22/06/2022

Results of Inflation Expectations Survey

According to Ipsos survey, short-term inflation expectations of the financial and corporate sectors recorded a moderate rise in May (6.0%) compared to the previous survey. Bloomberg June survey registered somewhat lower short-term inflation expectation of the financial sector (5.5%). The increase in inflation expectations may be attributed to further heightening of global uncertainty and its impact on global prices of energy and primary commodities.

Two- and three-year ahead inflation expectations of both financial and corporate sector were lower than short-term expectations, with financial sector expectations unchanged from the previous survey – 4.0% for two years ahead and 3.5% for three years ahead. Medium-term expectations of corporates measured 5.0% for two years ahead and 4.0% for three years ahead.

Survey results for two- and three-year ahead expectations may indicate that both financial and corporate sector expect lowering of inflationary pressures with the stabilisation of international commodity markets.

Anchored medium-term inflation expectations, which are also based on exchange rate stability, enhance the efficiency of monetary policy in maintaining low, stable and predictable inflation in the medium run, which is one of the necessary preconditions of sustainable economic growth.

For the purpose of more transparent communication with the public, since May 2015 the NBS has been publishing regular monthly reports on inflation expectations of the financial sector, corporate sector, trade unions and households. The Report on the Results of the Inflation Expectations Survey and the accompanying materials (time series, methodology and the survey questionnaire) can be accessed on the NBS website, section Publications.

Governor's Office