We would like to thank Sean Holly and Seppo Honkapohja for guidance and helpful discussions. We would

Abstract. This paper explores the connection between householdssocioeconomic background and their ination forecasts. We use data on ination expectations from the Survey of Consumer Attitudes and Behavior, conducted at the University of Michigan. Our contribution is threefold. First, we detect important empirical regularities in the connection between consumerssociodemographic background and their predictive accuracy. We show that part of the heterogeneity in their forecasts can be explained upon the fact that socioe-conomically more disadvantaged households may consider their group-speci\u85c CPI ination as their forecast objective, rather than being concerned with changes in the general CPI. Second, we explore the linkages between news coverage on ination and consumersexpec-tations. We show that distinguishing between news available to the public and perceived news is crucial for a correct assessment of the impact of news on consumersprediction bias. Third, we highlight important di¤erences in the degree of information stickiness across con-sumers with di¤erent socioeconomic backgrounds, and show that their predictive accurac