In contrast, it showed that they relied heavily on “developments in prices of frequently purchased items such as foodstuffs” and “developments in gasoline prices” when forming perceptions of the present price levels. These observations may suggest that households tend to use rational expectations – in addition to adaptive expectations – when forming longer-term inflation expectations.
With these few words, I thank you for your presence and declare the 2014 Ra Financial Inclusion Exposition open Thank You, Vinaka Vakalevu, Bohut Dhaniyavad. 2  BIS central bankers’ speeches