What is matched-sku inflation?
The price change of identical products observed in both periods, which isolates true price moves from changes in product mix.
Definition
Matched-SKU inflation, also called like-for-like or same-SKU inflation, compares the price of exactly the same products at two points in time. Products that are new or discontinued are excluded from the comparison.
This is the approach official statistics agencies use for price indices, because average price across a changing range mixes real price changes with changes in what is on sale.
How Data Purl measures it
Data Purl builds a panel of SKUs observed in both periods and computes the ratio of their summed prices. Where pack sizes vary, prices are normalized to a price per unit (per ounce, per 100g, per litre).
The difference between average-price change and matched-SKU change is reported separately as mix shift and new-product effect.
Why it matters
It answers the question 'did this brand actually raise prices?' rather than 'did it sell more expensive products?'. The two can move in opposite directions.
Pitfalls
- It measures listed online prices, not transaction prices across all channels.
Related
- Tracking a company's pricing power with eCommerce data
- Measuring category inflation from online prices
- Monitoring portfolio companies and competitors after the deal
- Measuring tariff price pass-through with online shelf prices
- Tracking private label share and price gaps
- Using eCommerce data in a consumer earnings preview
See the data for your coverage
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