A study on inflation credibility among students at the University of Pretoria

Abstract

Following on five pilot studies on inflation credibility in South Africa aimed at the construction of inflation credibility barometers and a literature review of the international measurement of inflation perceptions, this paper reports the findings of a study on inflation credibility among 493 students at the University of Pretoria. Credibility barometers are reported for different genders, for Asians, blacks, coloureds and whites, and for students in different faculties. The main conclusions are that the inflation perceptions by the different genders in this study do not correspond with international experience in this regard; international use of inflation barometers will ensure comparability of inflation credibility; and that inflation-targeting countries should sample inflation credibility and calculate an inflation credibility barometer.