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 …

Empirical evidence suggests consumers rely on their shopping experiences to form beliefs about inflation. In other …. Learning by shopping anchors households' beliefs about inflation to its past, causing disagreement with firms over the value of … inflation, increases the degree of anchoring of households' inflation expectations, and flattens the slope of the Phillips curve …

role in the transmission of household uncertainty to inflation. I develop an Overlapping Generations New Keynesian model …