Inflation concern, attention and central bank trust

Using individual-level data on trust in the European Central Bank, we study the association between inflation and the public's trust in the ECB. We find that inflation concern is important for understanding the link between inflation and central bank trust. Inflation is not directly linked to the public trust in the ECB but rather associated to it indirectly when it becomes a concern for survey respondents. We show that the public's inflation concern, although related to inflation attention, is only partly explained by it and is also a function of realized inflation.