Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/337489 
Year of Publication: 
2026
Series/Report no.: 
SAFE White Paper No. 117
Publisher: 
Leibniz Institute for Financial Research SAFE, Frankfurt a. M.
Abstract: 
This paper examines the persistent upward bias in euro area households' inflation perceptions and expectations, even when realized inflation is near the ECB's target. It discusses behavioural and informational drivers of this bias, its implications for consumption, wage setting, and monetary policy transmission, and the challenges it poses for ECB communication and credibility. The study concludes that improved monitoring and household-oriented communication are essential. This document was provided by the Economic Governance and EMU Scrutiny Unit at the request of the Committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 26 February 2026.
Subjects: 
Inflation Expectations
Monetary Policy
ECB
ISBN: 
978-92-848-3456-3
Document Type: 
Working Paper

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