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.
For example, US 2-year Treasury yields are the most attractive among the G10 economies, a situation highly unusual and unprecedented since the turn of this century. The main driver behind this is US economic policy, which – if you allow me to use a catch phrase– may be described as follows: “Fed up, with tariffs”, plus of course the drop in tax rates.