Inflation expectations remain stable despite COVID-19 uncertainty, future outlook uncertain.
Recent studies have looked at how to measure inflation expectations using economic surveys and market prices of inflation-linked assets. They found that inflation expectations weakened a bit after COVID-19 hit in early 2020, but have stayed mostly the same since then. This uncertainty about the impact of COVID-19 on economies means that future inflation expectations are also uncertain. It's important to keep an eye on different indicators of inflation expectations to understand what might happen next.