Short-Term Inflation Expectations Have Crashed To 5 Year Lows (In The US)

With all attention firmly focused on Draghi and Europe's deflationary pressures, it appears the mainstream media forgot to look domestically. With today's weaker than expected PPI, the 2Y Breakeven inflation rate continues to crash- from over 1.00% just a month ago to just 15.5bps this morning. 5Y5Y forwards continue to slide to near record lows across all the majors.

 

2Y Breakevens are crashing...

 

and 5Y5Y forwards - often discussed as the Central Bankers preferred perspective - are near record lows across all the majors...

 

US 5Y5Y Forward inflation pluinged 15bps today to 2.37% and does that look like Abe has stalled the deflationary 'mindset' in Japan?

 

Charts: Bloomberg