In fact, for the first time since 2009, TIPS implied inflation expectations for the US are all below 2% on a 5-year, 7-year, 10-year and 20-year basis. The 30-year TIPS implied inflation expectation is also below 2% (this series started in 2010). Inflation expectations have been on a steady decline since last summer. Over the past nine months, inflation expectations have fallen between 41-51 basis points. The declines have moderated somewhat in 2015, however, the downward trend doesn't look like it has reversed. The question facing investors now is has 2% inflation become a ceiling, not a target? (h/t F. Hale Stewart)