We have consumer inflation expectations surveys from the US and UK today. These will probably generate media excitement, but economically they are meaningless noise. Consumers’ inflation expectations are shaped by high-frequency purchases like food and fuel—most UK and US deflation is focused on low frequency purchases like durable goods. Inflation perceptions have more to do with the daily cost of buying a Snickers bar than the actual cost of living—although slower US food price inflation and UK supermarkets’ two-tier pricing may help lower perceptions.
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