Inflation expectations of economic agents are an important indicator to be relied on in the process of decision-making on monetary policy measures in an inflation targeting regime. The effectiveness of the inflation targeting strategy is measured by the degree of stability of inflation expectations and their anchoring within the target tolerance band. Stable and anchored inflation expectations contribute to greater credibility of monetary policy.
Consistent with the best international practice, after introducing the inflation targeting regime in January 2009, the NBS began monitoring and analysing on inflation expectations of economic agents. The source of data for these purposes is the inflation expectations survey, conducted for the NBS by Ipsos since January 2018. Survey participants are classified into four institutional sectors (financial sector, corporate sector, trade unions and households) and asked to state their expectations for the y-o-y price growth one-year ahead , and as of March 2014, also in the medium-term, i.e. two-year ahead.