In the ECB’s survey, reported inflation expectations for German households three years ahead are currently 2%, while they are 5% in the survey conducted by the Deutsche Bundesbank (Slide 13, left-hand side). Differences of that size complicate the assessment as to whether expectations are anchored or not.
Qualitative data, as collected by the European Commission, are therefore a useful complement for understanding consumers’ inflation perceptions and expectations. [26] In the past, inflation perceptions tended to closely follow actual inflation trends (Slide 13, right-hand side). Recently, however, an unusual gap has emerged between inflation perceptions and actual inflation.