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 …

This paper analyses the results from a new monthly survey of consumers’ euro area inflation expectations before and … during the pandemic. We find that consumers’ longterm euro area inflation expectations have remained elevated above the ECB …’s inflation aim throughout the pandemic. Moreover, their distributions have continuously shown a greater probability of high …