Measuring and Monitoring of Inflation Expectations in the United States: A Case Study

Inflation is a current topic in economics, as are consumer inflation expectations. This case study examines the measurement and monitoring of consumer inflation expectations, with particular emphasis on the period following the COVID-19 pandemic. It uses data from the Federal Reserve Bank of New York, which measures and monitors inflation expectations in the United States. The study shows that this is a good example of practice in the field. Research and data from the US central bank have shown that differences exist among US consumer demographic groups in their inflation expectations, highlighting the need to adapt communication and information as part of central bank measures. Managing inflation expectations is important for managing inflation, as the two are closely linked. Trust in the central bank is crucial for managing both, yet it tends to weaken during periods of high inflation. Therefore, it is the responsibility of the central bank to ensure the effective design and implementation of monetary policy, regardless of the state of the economy.