But a limited understanding of actual levels does not necessarily stop people from acting on their beliefs. Here the evidence is more mixed. ECB research, for example, finds that people tend to spend more than they would otherwise if they expect future inflation to be higher than the perceived level today (see left chart slide 8).
[20]  Slide 8 Association of higher inflation expectation with lower expected economic growth  https://www.ecb.europa.eu/press/key/date/2020/html/ecb.sp201124~bcaebee7c0.en.html  8/13  24/11/2020  COVID-19 and monetary policy: Reinforcing prevailing challenges  Other studies come to different conclusions, however. They find either no evidence of inflation expectations affecting consumption decisions or, more disturbingly, even suggest that higher inflation expectations could lower – rather than raise – consumption.