Uncertainty Is The Key To Eroding Consumer Confidence

When consumers know what to expect, and are not feeling uncertain, they can tolerate a lot. Inflation, high or low, matters more or less depending on how far those affected anticipate it and can consequently incorporate it into their expectations about coming price changes, but consumers often react strongly when inflation or deflation is unexpected. Louise Keely uses Nielsen’s global consumer confidence index to illustrate this trend.

Continue Reading