What consumers think is the main driver of recent inflation: changes in perceptions over time

Pedro Baptista, Colm Bates, Omiros Kouvavas, Pedro Neves and Katia Werkmeister

Economic Bulletin Boxes, 2024, vol. 7

Abstract: Consumer perceptions of the main drivers of inflation can affect their inflation expectations and, in turn, their economic behaviour. The results of the ECB’s Consumer Expectations Survey (CES) for March 2024 reveal that most euro area consumers attribute inflation primarily to input costs, followed by profits and wages. However, the proportion of consumers identifying wages as the main driver of inflation has increased since June 2023, with this perception being most pronounced in countries experiencing significant wage growth. These evolving perceptions highlight the need to monitor shifts in inflation narratives and their potential impact on inflation expectations. JEL Classification: D11, D84, E31

Keywords: Consumer survey; inflation expectations; input costs; profits; wages (search for similar items in EconPapers)
Date: 2024-10
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