한국 소비자의 기대 인플레이션 결정요인

Determinants of Inflation Expectations of South Korean Consumers

Purpose - The purpose of this study is to investigate the determinants of consumers’ inflation expectations using consumers’ inflation perceptions and the sub-components of consumer price index (CPI) basket in South Korea based on a consumer survey conducted by the Bank of Korea (BOK). Design/methodology/approach - Using Carroll’s (2003) epidemiological model, we analyzed data from January 2013 to January 2023, resulting in a data set of 121 observations for both inflation perceptions and inflation expectations. This study focuses only on aggregate inflation expectations and perceptions because of data availability from the BOK. Findings - Professionals’ forecasts play a major role in forming consumers’ inflation expectations, whereas the actual headline CPI and consumers’ inflation perceptions do not. These results remain robust when including the sub-components of the CPI basket in the analysis. Research implications or Originality - It would be the most efficient way to suppress professionals’ expected inflation in fighting against a substantial spike in consumers’ inflation expectations. To guide consumers’ inflation expectations based on BOK’s inflation targeting, the bank needs to consider professionals’ forecasts in devising monetary policies.