This level is in line with the expectations reported in January by the participants in the Survey of Professional Forecasters and with the indications implied by the prices of index-linked financial assets, which – while factoring in the latest unexpected rise in prices – continue to signal inflation expectations of around 2 per cent from 2023 onwards.
II.2  Financial markets  In the global fixed income markets (see slide 6), the flattening of yield curves throughout the second and the third quarters of 2005 has been something of a puzzle. More recently, worries about global inflation, mainly driven by high oil prices, seem to have reversed the decline in long-term bond yields, at least temporarily.