Eurozone consumers’ medium-term inflation expectations are influenced by short-term views, major shocks and trust in monetary policy, a working paper published by the Bank of Finland finds.

Ewa Stanisławska and Maritta Paloviita use the European Central Bank’s consumer expectations survey, a new monthly online survey of people living in the eurozone. In Medium- vs short-term consumer inflation expectations: evidence from a new euro area survey, they concentrate on data from six eurozone