In a speech I gave in Europe in March 2015, I discussed households’ and firms’ inflation expectations in detail. And I would now like to share with you some of those findings. 2 Since the amount of data acquired is not yet sufficient with regard to firms’ inflation expectations, some caution is required in interpreting the results. 1.
The momentum toward achieving the 2 percent target is somewhat weaker than the previous outlook, and thus developments in prices warrant careful attention going forward. The major reason behind these downward revisions lies in developments in medium- to long-term inflation expectations. Let me now move on to this point. II.