In 2011, inflation in the US was expected to reach 2.4% by 2013, according to consensus estimates. But since then, consensus expectations for 2013 consumer price inflation in the US have fallen by nearly 100 basis points (b.p.) to 1.5%, with a third of the drop coming in the past three months. Similar trends have unfolded in China, with inflation expectations for 2013 dropping by 150 b.p. from peaks two years ago.
Click here to read more.