The measure of breakeven inflation compensation based on Treasury Inflation-Protected Securities (TIPS) suggests that the recent inflation data have not disturbed longer-run inflation expectations. Indeed, since the April consumer price index data were released, TIPS-based breakeven inflation compensation for the next five years, as well as those for the five-year, five-year-forward, have moved down, not up.
The TIPS measures suggest that market participants are demanding less compensation for expected longer-term inflation than they were before the April inflation data were released, rather than more. Survey-based measures of inflation expectations are mixed.