This paper studies consumers’ inflation expectations using micro-level data from the University of Michigan’s Surveys of Consumers. It shows that beyond the well-established socioeconomic factors such as income, age, or gender, inflation expectations are also related to respondents’ financial situation, their purchasing attitudes, and their expectations about the macroeconomy. Respondents with current or expected financial difficulties and those with pessimistic attitudes about major purchases, income developments, or unemployment have a stronger upward bias than other households. However, their bias shrinks by more than that of the average household in response to increasing media reporting about inflation.

Ehrmann, M., Pfajfar, D., Santoro, E., Consumers’ attitudes and their inflation expectations, <<INTERNATIONAL JOURNAL OF CENTRAL BANKING>>, 2017; 13 (1): 225-259 [https://hdl.handle.net/10807/233112]

Consumers’ attitudes and their inflation expectations

Santoro, Emiliano
Membro del Collaboration Group
2017

Abstract

This paper studies consumers’ inflation expectations using micro-level data from the University of Michigan’s Surveys of Consumers. It shows that beyond the well-established socioeconomic factors such as income, age, or gender, inflation expectations are also related to respondents’ financial situation, their purchasing attitudes, and their expectations about the macroeconomy. Respondents with current or expected financial difficulties and those with pessimistic attitudes about major purchases, income developments, or unemployment have a stronger upward bias than other households. However, their bias shrinks by more than that of the average household in response to increasing media reporting about inflation.
2017
Inglese
Ehrmann, M., Pfajfar, D., Santoro, E., Consumers’ attitudes and their inflation expectations, <<INTERNATIONAL JOURNAL OF CENTRAL BANKING>>, 2017; 13 (1): 225-259 [https://hdl.handle.net/10807/233112]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/233112
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