After the experience of stagflation in the 1970s, central banks around the world today acknowledge the importance of anchoring inflation expectations and preserving the credibility of monetary policy. [2] This is also reflected in estimates of the Phillips curve which demonstrate that inflation expectations are one of the key determinants of actual inflation. [3]  2 Taking different inflation expectations into account However, there is the question of whose inflation expectations matter to monetary policy and which indicators should be monitored.
In terms of inflation pressures arising from labour and goods markets, it would be appropriate to consider inflation expectations across firms and households which are engaged in these markets. Economic experts, meanwhile, may be better informed about monetary policy and central bank intentions. And their forecasts could also provide guidance to other agents.