Inflation Expectations

Inflation expectations describes what people and businesses expect to happen to consumer prices in the future (usually one year ahead). Once a higher rate of inflation becomes established it can be difficult to remove. If people expect higher prices, this can then feed through to higher wage claims and rising costs. This is known as a wage-price spiral.

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.