Macroeconomics

Inflation Expectation

Definition

What is Inflation Expectation?

The rate of inflation households, businesses, or markets expect in the future.

Example in practice

Higher inflation expectations can push long-term bond yields upward.

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The total market value of final goods and services produced within a country during a period.

Gross domestic product adjusted for changes in prices.

Gross domestic product measured at current prices without adjusting for inflation.

A market environment in which investors favour higher-risk assets.

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