This report updates and extends earlier assessments of quantitative inflation perceptions and expectations of consumers … inflation are found to be higher than actual HICP (Harmonised Index of Consumer Prices) inflation over the entire sample period … (2004-2015). The analysis shows that European consumers hold different opinions of inflation depending on their income, age …

A statistically significant relationship between the unemployment gap and inflation can be found for a clear majority … slack on inflation can often be dominated by other shocks, including imported inflation. The current Secretariat Phillips … curve specification assumes inflation expectations are anchored at the central bank’s target, although some experimentation …