5 Over the past ten years, other advanced economies and a few emerging markets such as Korea have had a broadly similar experience. 6 In Brazil and Mexico, for example, long-term inflation expectations have declined from a range of 7 percent to 10 percent a decade ago to a fairly steady 3 percent to 4 percent in recent years.
Considering the high rates of inflation that these economies experienced not long ago, the low level and stability of long-term inflation expectations in recent years is remarkable. Indeed, few long-term inflation forecasts in any country currently exceed 5 percent, although Venezuela provides one counterexample, with a long-term inflation forecast now of 15 percent.