As far as indicators related to households are concerned, according to the Opinion Survey on the General Public’s Views and Behavior, the share of respondents who expected that prices will go up one year from now exceeds 80 percent (Chart 11). A number of surveys collecting views among economists also indicate that the expected rate of inflation is rising.
Moreover, many of the costs of inflation – such as those associated with misconceptions regarding inflation, efforts to insure against inflation, and distortions to the financial system – are associated with the rate of change in the entire set of prices of goods and services facing households or firms, suggesting that measured inflation should be gauged by the rate of change in a broad set of prices.