On the left, we show inflation expectations over the next five years from consumers, professional forecasters and financial participants. This is particularly important for monetary policy, as bringing inflation back down will be difficult if higher inflation becomes embedded in expectations. Fortunately, inflation expectations have stayed well anchored around the Fed's 2% target. On the right, we show the Citi Inflation Surprise Index, which measures how monthly inflation readings compare to market expectations. A reading above 0 means inflation is printing above expectations, while a figure below 0 means inflation is printing below expectations.