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The Impact of the 2008 Crisis on UK Prices: What We Can Learn from the CPI Microdata1

Dixon, Huw, Luintel, Kui, Tian, Kun (2020) The Impact of the 2008 Crisis on UK Prices: What We Can Learn from the CPI Microdata1. Oxford Bulletin of Economics and Statistics, 82 (6). pp. 1322-1341. ISSN 0305-9049. E-ISSN 1468-0084. (doi:10.1111/obes.12373) (KAR id:97908)


This paper takes the locally collected price quotes used to construct the CPI index in the UK for the period 1996–2013 and explores the impact of the Great Recession (2008-9) on the pricing behaviour of firms. We develop a time series framework which captures the link between macroeconomic variables and the behaviour of prices in terms of the frequency of price change, the dispersion of price levels and the size, dispersion and kurtosis of price-growth. We find strong evidence for inflation having an effect, but not output. The change in the behaviour of prices during the Great Recession is largely explained by the changes in inflation and VAT. Nevertheless, the magnitude of the inflation effect is sufficiently small that it need not influence monetary policy. © 2020 The Authors. Oxford Bulletin of Economics and Statistics published by Oxford University and John Wiley & Sons Ltd.

Item Type: Article
DOI/Identification number: 10.1111/obes.12373
Subjects: H Social Sciences
Divisions: Divisions > Kent Business School - Division > Department of Marketing, Entrepreneurship and International Business
Funders: University of East Anglia (
Depositing User: Kun Tian
Date Deposited: 10 Nov 2022 10:19 UTC
Last Modified: 11 Nov 2022 09:56 UTC
Resource URI: (The current URI for this page, for reference purposes)

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