The purpose of the present paper is to study how households form inflation expectations. Using a novel survey …-base dataset of Italian households' opinions of inflation we investigate two separate, but related, types of behavior …: 'inattentiveness' and 'anchoring'. The present analysis extends the existing literature by incorporating explicitly inflation targets …

Using the ECB Consumer Expectations Survey, this paper investigates how consumers revise medium-term inflation … medium-term inflation views in response to changes in short-term inflation expectations and, to a lesser degree, to changes … in perceptions of current inflation. We find that the strong adverse Covid-19 pandemic shock contributed to an increase …