Breakevens vs surveyed expectations in SA

Five year-ahead breakeven inflation (i.e. market-implied expectations of inflation) is currently above one year-ahead expectations. Survey-based inflation expectations are the other way around, with 5 year expectations below one-year ahead expectations.  Breakevens are also driven by factors beyond market inflation expectations (such as liquidity premia), so it may also be a reflection of a change in financial market conditions.

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