...the latest issue (No. 104) of the ECB Research Bulletin, (is) entitled "Recent changes in consumers’ medium-term inflation expectations – a detailed look".

Dimitris Georgarakos, Geoff Kenny and Justus Meyer (all Directorate General Research, European Central Bank) use the richness and flexible design of the ECB’s Consumer Expectations Survey (CES) to explore in detail recent changes in consumers’ medium-term inflation expectations. 

The data suggest that over the course of 2022 these expectations became less well anchored around the ECB’s 2% inflation target. 

By taking the necessary monetary policy actions and by actively communicating how monetary policy is contributing to stabilising future inflation, the ECB can help strengthen public trust and prevent recent price and cost shocks from having longer-lasting effects on inflation expectations.

The ECB Research Bulletin features a selection of recent work on policy-relevant topics by ECB economists. 

Published on a monthly basis, the articles in the Research Bulletin are intended for a general audience. The views expressed in each article are those of the authors and do not necessarily represent the views of the European Central Bank and the Eurosystem. (...)