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National Brands, Private Labels, and Food Price Inflation

Published online by Cambridge University Press:  12 June 2017

Rickard James Volpe III
Rickard James Volpe III*
Affiliation:
Agribusiness Department, California Polytechnic State University, San Luis Obispo, California
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Abstract

This article investigates the extent to which national brand and private label (store brand) prices behave differently as food price inflation changes. Empirical tests using a range of indices support the hypotheses that rising commodity and fuel prices lead to relatively larger surges in private label prices. When food prices are rising or high, the average price difference between national brands and private labels shrinks. The findings have implications for understanding the welfare effects of private labels. Moreover, they suggest that food price inflation is stronger for low-income households as food prices rise.

Keywords

Consumer Price Indexfood pricesinput costsprice inflationprivate labelsseemingly unrelated regressionE31L16P42Q11E31

Information

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 46 , Issue 4 , November 2014 , pp. 575 - 591
Copyright
Copyright © Southern Agricultural Economics Association 2014

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