The Impact of Inflation Expectations on Polish Consumers’ Spending and Saving

Abstract

This article explores the relation between consumers’ inflation expectations and their spending and saving behavior, proxied by their buying and saving attitudes. The analysis, using a large micro dataset, suggests that inflation expectations negatively affect saving attitudes, especially in the group of consumers characterized by a very good financial situation. Moreover, the role of inflation expectations has increased since the global financial crisis. The results for buying attitudes are somewhat puzzling—especially if one tries to interpret them together with the results for saving attitude—as they also suggest a negative, although very weak, link to inflation expectations.