We find strong econometric support for a break in the relationship between perceived and HICP inflation in the euro …

We find strong econometric support for a break in the relationship between perceived and HICP inflation in the euro …

its impact on inflation. Indeed, the vast majority of consumers, both in the euro area as a whole and in Belgium, were … both the movement of actual prices over the five years following the changeover to the euro and the trend in inflation … contributed to the breaking of the link between actual and perceived inflation. There is clear evidence that the euro cash …

At the moment of the euro cash changeover, inflation perceptions in the euro area deviated from measured inflation, and … data model. Inflation perceptions are found to be highly persistent (the autoregressive term is large and statistically … found not to explain inflation perceptions better than does the all-items HICP index. As suggested by psychological …

We find strong econometric support for a break in the relationship between perceived and HICP inflation in the euro …

During 2002, the discrepancy between the official inflation rate and that perceived by consumers picked up to an all … this effect is confirmed by the evidence that in most countries inflation misperception is positively related to the …

This study compares consumers’ subjective price perceptions with official inflation data for the period from the euro … cash changeover in 2002 to 2006. At an annual average of 1.7%, the overall rate of inflation has remained low over the past … distorts the perception of inflation. Yet survey data show that consumers’ value perception is continually improving. The …

actual inflation — as measured by the Harmonised Index of Consumer Prices (HICP) — and the inflation perceived by the general … in question can in part be attributed to the fact that people 's perception of inflation seems to be based mainly on the … often. According to recent hypotheses on perceived inflation (Brachinger, 2005a), the public furthermore perceives price …

The purpose of the present paper is to study how households form inflation expectations. Using a novel survey …-base dataset of Italian households' opinions of inflation we investigate two separate, but related, types of behavior …: 'inattentiveness' and 'anchoring'. The present analysis extends the existing literature by incorporating explicitly inflation targets …