The paper describes a wide range of approaches to what is known as a perception gap among consumers in the European Union after most member countries switched to the single European currency in 2002. The author focuses on issues linked with the consumer theory, analyzing why consumers are unable to properly estimate the value of inflation - in terms of its compatibility with the Harmonized Index of Consumer Prices (HICP), an inflation and price stability indicator used by the European Central Bank. The first part of the paper outlines research theories related to the perception gap. These include the theories of limited rationality and rational passivity, in addition to behavioral economics and neuroeconomics. The second part of the paper discusses factors behind the perception of inflation, taking into account theoretical discussions conducted as part of various scientific disciplines. This approach is designed to show the state of debate on the perception of inflation and stress the growing role of heterodox approaches in contemporary economics.
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