We investigate the updating behavior of individual consumers regarding their shortand long-run inflation expectations … adjust their inflation expectations over a period of six months. We find evidence that the updating frequency has been …. Moreover, individual expectations are found to be more accurate after an update and forecast accuracy is affected by inflation …

This paper presents a rational expectations model of asset prices with rationally inattentive investors that, unlike …

We show that, to form aggregate inflation expectations, consumers rely on the price changes they face in their daily …, matter for individuals’ inflation expectations. To document these facts, we collect novel micro data for a representative US … sample that uniquely match individual expectations, detailed information about consumption bundles, and item-level prices …

attention to changes in their input costs, which leads to a flatter Phillips curve and more anchored inflation expectations …