Implied Inflation Below 1% over the Next Two Years

EconomPic had an interesting graph on implied inflation yesterday:

We'll see if there are any surprises in store with CPI this morning, but remember when inflation was the big worry? Inflation Swaps now price in an average CPI over the next two years at 0.72% and five years at 1.79%.



















Source: Lehman

Followed by their post on the Consumer Price Index release:

"CPI has Gone Dormant"

Per the WSJ:

The consumer price index was unchanged in September compared to August, the Labor Department said Thursday. Excluding food and energy, the CPI advanced just 0.1% last month....MORE (including graph)