New evidence on consumer price rigidity in Poland

Nominal rigidities play a central role in monetary policy transmission, shaping how inflation and real activity respond to various shocks. Using a large longitudinal dataset of granular price data for Poland covering 2000–2024, we contribute to the literature on price stickiness by documenting key features of price-setting behaviour in Poland. First, overall price stickiness in Poland is substantial, with the average (median) implied price duration of four (over six) months. Second, there is considerable heterogeneity and asymmetry present at the sectoral level. Third, the size of price changes is large, underscoring the importance of idiosyncratic shocks in price formation. Fourth, there is little evidence of downward nominal price rigidity outside the services sector, while there is strong evidence that price discounts play a significant role for price-setting. Finally, in recent years the frequency of price changes has increased broadly, indicating strengthened effectiveness of monetary policy in bringing inflation back to target.