Ever since 1999, all financial market indicators and private sector forecasts suggest that expectations of future inflation have remained remarkably well anchored to the ECB’s definition of price stability. For example, expectations derived from the prices of nominal and indexed-linked bonds provide compelling evidence that long-term inflation expectations are well anchored in the euro area.
7 Less Mexican manufacturing dynamism seems to have begun to affect important segments of the services sector, such as commerce and transportation, highly correlated with manufacturing, a worrisome event given that the services sector has been a key growth engine in the past few years.