Research Discussion Paper – RDP 2024-07 How Do Households Form Inflation and Wage Expectations?

Contents

• Introduction
• Related Literature
• Data Description
• Differing Drivers of Wage and Inflation Expectations
• Responsiveness of Expectations to Shocks
• Formation of Wage and Inflation Expectations
• Conclusion
• Appendix A: Regression Results
• References

Thanks to Tom Cusbert, Susan Black, Tom Rosewall, Tom Williams, Sarah Hunter and seminar participants at the Reserve Bank of Australia for comments on the paper. These are the views of the authors and not the Reserve Bank of Australia. Any remaining errors are our own. A revised version of the paper may be made available following further analysis.