Quantitative versus qualitative measures of price expectations: The evidence from Australian consumer surveys

Abstract

This letter analyses price expectations data derived from the quarterly Australian Survey of Consumers. The survey asks both qualitative and quantitative price expectations questions. The information loss arising from using the more readily available qualitative based series as approximations to the quantitative series is assessed. Qualitatively based series are found to greatly exaggerate changes in consumer price expectations in times of high inflation. © 1979.