Inflation Outlook for Europe

The chart below from The Economist should be like a nightmare for the European Central Bank. After so many years of printing money and buy a wide array of assets, core inflation is still stuck at 1%. The market is also pricing very low inflation. The 5Y – 5Y FWD Swap Rate (the 5 Year Interest Rate expected in 5 Year time) is still stuck at around 1.5% with no intention of going up any time soon.