Understanding Consumer Inflation Expectations during the COVID-19 Pandemic

Gunda-Alexandra Detmers, Sui-Jade Ho, Özer Karagedikli

    Research output: Contribution to journalArticle

    Abstract

    We study how individuals' formation of inflation expectations are affected by the stringent containment and economic support measures put in place during the COVID-19 pandemic. Using the New York Fed Survey of Consumer Expectations (SCE) and the Oxford COVID-19 Government Response Tracker (OxCGRT), we find that policies aimed at containing the pandemic lead to an increase in individuals' inflation expectations and inflation uncertainty. We also find some heterogeneity in the impact across different demographic groups.
    Original languageEnglish
    Pages (from-to)141-154
    JournalThe Australian Economic Review
    Volume55
    Issue number1
    DOIs
    Publication statusPublished - 2022

    Cite this