Economists: is this true of inflation? At moments of high food-price inflation but falling petrol prices, do people’s inflation perceptions anchor to food, and vice versa? Or do inflation perceptions reflect general inflation quite well?
Replies
I think there is reasonable evidence that the public (much to the annoyance of central bankers) is very sensitive to ‘anti-core’ inflation - food and energy.
aug 23, 2025, 7:34 am • 7 0 • view
It's what's most immediately noticeable, so it makes intuitive sense.
aug 23, 2025, 11:55 am • 0 0 • view
Useful paper www.bankofengland.co.uk/-/media/boe/...
aug 23, 2025, 7:38 am • 0 0 • view
Interesting, thanks. The answer seems to be: no, inflation perceptions are consistently linked to food prices and alcohol prices.
aug 23, 2025, 8:08 am • 1 0 • view
It is certainly true of social security benefits/welfare. There are people who absolutely lose it if you refer to state pensions as a benefit.
aug 23, 2025, 9:43 am • 1 0 • view