Sticky CPI

Old ATL Fed article on sticky cpi

When items that infrequently change prices start raising prices. Notice these items were (generally) stable during Covid.





The Sticky Price Consumer Price Index (CPI) is calculated from a subset of goods and services included in the CPI that change price relatively infrequently. Because these goods and services change price relatively infrequently, they are thought to incorporate expectations about future inflation to a greater degree than prices that change on a more frequent basis. One possible explanation for sticky prices could be the costs firms incur when changing price.