Inflation Expectations are Falling

Slightly

One super cool metric is the inflation rate implied by interest rates and inflation-linked securities:

This rate is what the market is implying inflation will be over the coming ten years. It’s been elevated since the beginning of 2021 but is now starting to fall, which is a good sign for the “peak” inflation everyone is looking out for. We’ll see how those expectations and the actual rates play out over they next few weeks but it’s certainly bette than seeing this time series move in the opposite direction.