Households’ inflation expectations continue to decline in February
In February, as in January 2021, households’ inflation expectations declined.
According to an inFOM’s survey, respondents’ estimates of inflation for the next 12 months are 9.9%, which is significantly lower than the observed price growth rate of 12.3%. This proportion of estimates of current and future inflation indicates that the respondents expect a slowdown in price growth in the coming months.
Estimates of short-term price expectations of enterprises in February changed only slightly, remaining near the high levels of March—April 2020. Analysts’ inflation forecasts for 2021 and 2022 also remained nearly unchanged around 4%.
Further details are available in the new issue of the Bank of Russia’s information and analytical commentary ‘Inflation expectations and consumer sentiment’.