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Household perceptions and expectations in the wake of the inflation surge: survey evidence

Author

Listed:
  • Fiorella De Fiore
  • Damiano Sandri
  • James Yetman

Abstract

A novel international survey across 29 advanced and emerging market economies reveals that household inflation expectations remain elevated, despite inflation rates approaching targets. Perceptions of significant price hikes post-pandemic tend to feed into higher household inflation expectations, pointing to the risk of a lasting impact of temporary inflation bursts. Households with greater knowledge of central banks and their price stability mandates report lower inflation expectations. Therefore, central bank communications can help improve the public's understanding of central banks and foster the anchoring of inflation expectations.

Suggested Citation

  • Fiorella De Fiore & Damiano Sandri & James Yetman, 2025. "Household perceptions and expectations in the wake of the inflation surge: survey evidence," BIS Bulletins 104, Bank for International Settlements.
    • Handle: RePEc:bis:bisblt:104
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    References listed on IDEAS

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    3. Michael Weber & Bernardo Candia & Hassan Afrouzi & Tiziano Ropele & Rodrigo Lluberas & Serafin Frache & Brent Meyer & Saten Kumar & Yuriy Gorodnichenko & Dimitris Georgarakos & Olivier Coibion & Geoff, 2025. "Tell Me Something I Don't Already Know: Learning in Low‐ and High‐Inflation Settings," Econometrica, Econometric Society, vol. 93(1), pages 229-264, January.
    4. Jessica Piccolo & Yuriy Gorodnichenko, "undated". "Homeownership and Attention to Inflation: Evidence from Information Treatments," "Marco Fanno" Working Papers 0317, Dipartimento di Scienze Economiche "Marco Fanno".
    5. Ulrike Malmendier & Stefan Nagel, 2011. "Depression Babies: Do Macroeconomic Experiences Affect Risk Taking?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(1), pages 373-416.
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    Cited by:

    1. Emanuel Kohlscheen & Phurichai Rungcharoenkitkul & Dora Xia & Fabrizio Zampolli, 2025. "Macroeconomic impact of tariffs and policy uncertainty," BIS Bulletins 110, Bank for International Settlements.

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