Journal Article
Consumer inflation views in three countries
Abstract: Financial markets and professional forecasters expect central banks to hit their inflation targets. But U.S., British, and Japanese consumers expect inflation to be higher. Data suggest that consumers in these countries don?t pay attention to central bank inflation targets and react sluggishly to persistent shifts in the inflation rate. However, the price of oil apparently influences inflation expectations strongly. It?s possible that consumers use highly volatile oil prices in a rule of thumb for updating their inflation expectations.
Keywords: Inflation (Finance); Petroleum products - Prices;
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Bibliographic Information
Provider: Federal Reserve Bank of San Francisco
Part of Series: FRBSF Economic Letter
Publication Date: 2013
Order Number: 35