Why household surveys are not : assessing surveys in inflation-targeting countries

Abstract

Available literature shows that little has been published on the inflation perceptions of households (i.e., the general public) in inflation-targeting countries. On the contrary, substantial literature exists on inflation forecasts, particularly forecasts by businesses and financial institutions. This note addresses the void with respect to inflation perceptions of households. Inflation perceptions of households comprise (forward-looking) inflation expectations and (backward-looking) inflation credibility, with the latter feeding into decisions that will influence future inflation.