Macroeconomics
Inflation Expectation
Definition
What is Inflation Expectation?
The rate of inflationA sustained increase in the general price level, reducing the purchasing power of money. households, businesses, or markets expect in the future.
Example in practice
How This Looks in Practice
Higher inflation expectations can push long-term bond yields upward.
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Related Terms
Macroeconomics
Gross Domestic Product
The total market value of final goods and services produced within a country during a period.
MacroeconomicsReal GDP
Gross domestic product adjusted for changes in prices.
MacroeconomicsNominal GDP
Gross domestic product measured at current prices without adjusting for inflation.
Market SentimentRisk-On Market
A market environment in which investors favour higher-risk assets.