Scandinavian Working Papers in Business Administration

Working Papers,
Örebro University, School of Business

No 2022:6: Inflation Illiteracy – A Micro-Data Analysis

Fredrik N G Andersson (), Erik Hjalmarsson () and Pär Österholm ()
Additional contact information
Fredrik N G Andersson: Lund University, Postal: Lund University, Department of Economics, Box 7082, 220 07 Lund, Sweden
Erik Hjalmarsson: University of Gothenburg, Postal: University of Gothenburg, Department of Economics, Box 640, 405 30 Gothenburg, Sweden
Pär Österholm: Örebro University School of Business, Postal: Örebro University, School of Business, SE - 701 82 ÖREBRO, Sweden

Abstract: Survey data indicate that a relatively large share of households is ill-informed about the rate of inflation in the economy, with perceived and expected rates of inflation deviating sub-stantially from official measures. Using Swedish micro-level data, we find that such inflation illiteracy is related to respondent characteristics, including income, education and sex.

Keywords: Perceived inflation; Inflation expectations; Survey data; Economic literacy

JEL-codes: E31

Language: English

10 pages, May 20, 2022

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