Federico Pessina, Maren Froemel and Ivan Yotzov
Understanding inflation expectations is key for monetary policy makers and has been central to the policy debate in recent years. We use data from the Decision Maker Panel (DMP) – an economy-wide UK business survey – to analyse businesses’ expectations about aggregate CPI inflation, and the relationship with their own-price expectations. On average, ...
The strongest version of this narrative is that it provides a rigorous, data-driven analysis of how UK firms perceive and form inflation expectations, highlighting the role of firm characteristics in shaping these beliefs. The study leverages a robust dataset from the Decision Maker Panel, offering valuable insights into the dynamics of inflation expectations and their implications for monetary policy. The authors deserve credit for their transparent methodology, clear presentation of findings, ...