Some Strange Things about Inflation Expectations

I was interviewed for a Markeplace piece on some of the strange beliefs people have about how the government measures inflation.

One of the tangental points I mentioned to the reporter (it didn’t make into the article) is  household inflation expectations are consistently upwardly biased (by about a percentage point). This is shown in the below graph with ex post inflation (black) against forecasted from Survey of Professional Forecasters (blue) and Michigan (red).

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