3/9  BIS central bankers' speeches  Option prices in financial markets, for example, suggest that investors currently price in almost a one-in-four chance that inflation over the next five years will average more than 2% – the highest level since 2014 (left chart slide 9).
Estimates of the inflation risk premium, which had turned negative a few years ago on the back of growing risks of deflation, now signal a renewed interest of investors to hedge against the risks of inflation (right chart slide 9). Flows into inflation-protected bond funds have accelerated measurably since around last summer in both the euro area and the United States.