Bulletin – June Quarter 2010 Price-setting Behaviour – Insights from Australian Firms Abstract

Since 2004, the RBA has been conducting a survey of how firms set prices, how frequently they review and change prices, and what factors influence these decisions. The results show that firms employ a range of approaches to price setting, with around half reviewing their prices at a regular interval. Early in the survey period, costs were the most important factor in price setting, though demand considerations became more important when economic conditions softened.

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