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How do energy prices influence inflation expectations? Research Brief | 62nd edition – November 2023
A new research paper shows that German households increase their inflation expectations following increases in their energy prices. This effect is, however, absent for high-income and well-informed households as well as for firms. Higher inflation expectations can influence saving and consumption decisions and thus aggregate demand.
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Switching to a newsletter subscription procedure for explanatory information on rule changes to the Eurosystem collateral framework and other ad-hoc information as of 1 February 2024
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