Financial market-based measures of inflation expectations have returned to pre-pandemic levels, but consumers’ and firms’ expectations are generally more subdued, and the increase in industrial firms’ expectations seems to be due to short-term supply problems. All this supports our view that temporary forces will push inflation above 2% later this year, before it then drops back in 2022.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services