Definition of «inflation expectations»

Inflation expectations refer to the general belief or anticipation that prices for goods and services will increase over time. This expectation can influence consumer behavior, business decisions, and economic policy-making. Central banks often monitor inflation expectations as a key indicator of potential future price pressures, which can help them make informed decisions about monetary policy. Higher inflation expectations may lead to higher interest rates, while lower expectations may result in lower rates.

Sentences with «inflation expectations»

  • By contrast, the longer - term inflation expectations of financial market participants have risen slightly over the past three months. (rba.gov.au)
  • A forward - looking focus is essential as policy adjustments affect activity and inflation with a lag and because of the crucial role of inflation expectations in shaping actual inflation outcomes. (rba.gov.au)
  • In our presentation, we note that there have been shifting trends in inflation expectations in the past year alone. (newyorkfed.org)
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