Focus on Survey-Based Inflation Expectations

Read this Economic Brief from the Federal Reserve Bank of Richmond to learn about consumer-based surveys of inflation expectations and use the FRED graph below to compare survey responses with the actual consumer price index inflation rate.

From the FRED Blog

The post “How to measure inflation expectations” discusses how the Federal Reserve Bank of St. Louis uses data from the U.S. Treasury Department to calculate several breakeven inflation rates.

Quiz Yourself on Inflation Expectations

Q1. Hover the mouse pointer over the January 2023 date on the graph to read the data. What is the average expected inflation rate one year from that date?

Q2. As of January 2023, which is lower, the 2-year expected inflation or 3-year expected inflation?

Read this FRED Blog post to learn more about those data.

Q1. Compare the average 1-year inflation rate expected on February 2021 (the green line) with the annual consumer price index inflation rate registered on February 2022 (the blue line). Which one was higher?

Read this FRED Blog post to learn how the graph was created.

Q1. The graph shows an index measuring consumer expectations about future inflation rates in the euro area (19 countries). Increasing index values represent higher inflation expectations and decreasing index values represent lower inflation expectations. As of December 2022, are inflation expectations in the euro area (19 countries) rising or falling?

Read this FRED Blog post to learn more about those data.

You can share these graphs with your students using this dashboard. To customize this dashboard, just click the “Save to My Account” button at the top of the dashboard.

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