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Articles

Inflation Expectations of Households: Adaptive, Rational, or Sticky?

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By Eddie Boy L, Mary C
| gov.ph
Understanding the formation of inflation expectations is crucial for monetary policymaking, given that these expectations shape inflation dynamics. Using Bangko Sentral ng Pilipinas (BSP) Consumer Expectations Survey (CES) data, we test whether Filipino households’ inflation expectations can be characterized as adaptive, rational, or sticky. Empirical evidence indicates that households are partly adaptive and not fully rational.
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Dissecting Consumer Attention: Insights on Consumers' Inflation Expectations in the Philippines

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By Mary C, Alan Chester T, Eddie Boy L
| gov.ph
Stable and well-anchored inflation expectations are key in central banks’ mandate to maintain price stability. However, consumer expectations research in the Philippines remains limited.
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