Since investors are currently keen on hedging particularly against a period of surprisingly low inflation rates, the inflation expectations derived from financial market data, which currently stand at 1.4%, could actually understate the price increase expected by market players over the longer run.
Certainly, this is what is suggested by a comparison with survey-based longer-run inflation expectations – according to an ECB survey, they have most recently dropped only very little, to 1.8%. The Consensus Economics surveys are even showing a slight pick-up.