indicators for the US and Germany, we demonstrate that our inflation sentiment indicators improve forecast accuracy in comparison …In this paper we argue that future inflation in an economy depends on the way people perceive current inflation, their … inflation sentiment. We construct some simple measures of inflation sentiment which capture whether price acceleration is shared …

evaluation of predictive accuracy, we subject all structures to a mutual validation using parametric bootstrapping. Ultimately … small set of simple bivariate closed-loop time-series models for the prediction of price inflation and of long- and short …