The Affect Of Price Changes On Perceptions Of Inflation Under The Different Information Framing

Various reasons of price fluctuations in the economy and society can be seen everywhere.Even in relatively stable economic situation, the prices of goods and services will also be changed.Inflation on the price changes of subjective affects awareness. Inflation perceptions affect inflationexpectations and further affect the economic behavior of the individuals in the economic and socialand economic decisions. So the process of inflation formation and the influence factors is the corecontent of study of the perceived inflation and inflation expectations.In this paper, based on the changed direction and extent of prices, we did empirical research toexplore the effects of price changes on inflation perceptions. Then we discuss the differentinformation within the framework of price changes on inflation expectations adjustment. Theresearch results show that the effect of loss aversion, when rising prices, price changes can affectthe individual perception of price changes more. The price changes of fast-moving consumergoods are more sensitive than for durable goods. Experimental results show that framing effect alsohave an impact on inflation perceptions. This reminds us, the media of macroeconomic informationpublished (including the relevant data and policy), must be to the adaptive expectations had agreater influence on the consumer; While published media point of view, through its publicopinion voice, incomplete rational expectations to the rational expectations and main impactconsumers. Shows that in the process of the formation of the public perception of inflation, indeedthere is a media expanding effect.This study of inflationary perception, will expand the inflation trend of cognitive perceptionmechanism research, and expand to research on the effects of inflation and other factors includingsocial amplification effect, as well as expected and the cost of consumers for this internal memoryand knowledge factors. If our understanding of these mechanisms is good, we could betterunderstand consumer response to price changes. For inflation, of course, the complexity ofthinking is very important to find consumers, because their expectations change consumptionpattern is very important at the same time, In our study, we have to consider individual cognitivemodel for the influence of different response patterns of response. In addition, further deepen theconsumer cognitive model and its determinants, and USES such as recent new development method of cognitive map helps us to understand, is inflation in the future research direction in thefield of perception.