Template-Type: ReDIF-Paper 1.0
Author-Name: Fiorella De Fiore
Author-X-Name-First: Fiorella
Author-X-Name-Last: De Fiore
Author-Name: Tirupam Goel
Author-X-Name-First: Tirupam 
Author-X-Name-Last: Goel
Author-Name: Deniz Igan
Author-X-Name-First: Deniz
Author-X-Name-Last: Igan
Author-Name: Richhild Moessner
Author-X-Name-First: Richhild
Author-X-Name-Last: Moessner
Title: Rising household inflation expectations: what are the communication challenges for central banks?
Abstract: Household inflation expectations have risen alongside higher inflation. These expectations matter for central banks since they affect consumption decisions and wage demands, shaping the public debate on inflation.
Households are more influenced by the prices of frequently purchased items. This partly explains why they typically perceive current inflation to be higher than official inflation and why their expectations of future inflation exceed those of professional forecasters.
Households may not fully appreciate the link between inflation and monetary policy. Continuous and direct engagement by central banks using simple and relatable messages can make communication more effective.
Length: 9 pages
Creation-Date: 2022-05-23
File-URL: https://www.bis.org/publ/bisbull55.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/bisbull55.htm
File-Format: text/html
Number: 55
Handle: RePEc:bis:bisblt:55