Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of Boston
Current Policy Perspectives
Sectoral inflation and the Phillips curve: what has changed since the Great Recession?
Maria Jose Luengo-Prado
Nikhil Rao
Viacheslav Sheremirov
Abstract

Using sectoral data at a medium level of aggregation, we find that price changes became less responsive to aggregate unemployment around 2009–2010. The slopes of the disaggregated Phillips curves diminished in many sectors, including housing and some services. We also document a decrease in sectoral inflation persistence, suggesting an increase in the weight of the forward-looking inflation expectation component and a decrease in the weight of the backward-looking component.


Download Summary
Download Full text
Cite this item
Maria Jose Luengo-Prado & Nikhil Rao & Viacheslav Sheremirov, Sectoral inflation and the Phillips curve: what has changed since the Great Recession?, Federal Reserve Bank of Boston, Current Policy Perspectives 17-5, 01 Nov 2017.
More from this series
JEL Classification:
Subject headings:
Keywords: disaggregate price indices; inflation persistence; Phillips curve
For corrections, contact Catherine Spozio ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal