Setting prices, negotiating wages, deciding how much to invest or how many workers to employ - these are all choices companies make that have profound implications. When taking these decisions, firms typically consider their own business needs, the behaviour of their competitors, the state of the economy and how they think it will evolve. How firms form their expectations about inflation, and how these expectations influence their decisions, is therefore important for central banks. The inflation expectations of euro area firms are not very well understood. One reason is that they are not measured in a consistent way ... (full story)