If firms and households expect that wages and prices will not increase easily, this feedback will not operate smoothly. In this context, recent studies point out that people's inflation expectations tend to depend not only on developments in actual prices, but also individuals' experiences over a long period.
Rationales for aiming for positive inflation (2): measurement error in the HICP A second reason to aim for low positive inflation is that available inflation statistics may be subject to a positive measurement error, which would imply that strict price stability, that is, zero inflation, as measured by the price index would de facto mean a declining price level.