Description

This article investigates the effects that the inflationary cycle of the Chilean economy has had on households perception, expectations and behavior changes during the year 2021. The results presented are based on a qualitative study that considers the testimonies of 36 household expenditure managers, who were selected considering socio-demographic and territorial diversity criteria. The main findings of the study are organized on three levels: First, there is evidence of a generalized perception of price increases above the usual variation rate, which in turn indicates the existence of an anchored perception to a normal or usual variation of prices. Secondly, in the face of rising prices, households have incorporated various strategies to protect themselves from inflation, highlighting that bringing forward purchases is not as prevalent as might be expected in the face of a potential increase in inflation expectations. The third finding is related to the fact that households expect a normalization of the speed of price increases in one or two years, with no expectations of future modifications in their economic behavior, beyond those already made. The latter is an indication that households' expectations are anchored, notwithstanding the fact that they have high levels of uncertainty about future events that could continue to affect prices, mainly associated with the evolution of the health crisis and the national political scenario.