This paper uses survey data to assess consumers' inflation expectations in the euro area. The probability approach is … used to derive quantitative estimates of inflation expectations from the European Commission's Consumer Survey. The paper … subsequently analyses the empirical properties of the estimated inflation expectations by considering the extent to which they …

datasets collected in a period with relatively low and stable inflation. First, price changes are infrequent in the core … change is smaller, but nevertheless larger than inflation. Third, price setting is mildly state-dependent: the probability of … in aggregate inflation, which instead mainly reflected shifts in the average size of price changes. Consistent with …