This paper studies the formation of inflation expectations in the euro area. We first analyse the forecast accuracy of ECB inflation projections relative to private sector forecasts. Then, using the ECB Survey of Professional Forecasters (ECB SPF), we estimate a general model integrating two...

This paper discusses measurement techniques used in the literature to quantify inflation perception and expectations on the basis of qualitative survey data. Description of quantification methods and assessment of their strengths and weaknesses is supplemented with an overview of direct measures...