Americans also now expect significantly higher inflation than they expected a few months ago, the survey said.

"To me, now is not the time to be expecting inflation to heat up."

More to the point, investors expect considerable inflation over the next 10 years.

He expects inflation to stay low and interest rates soft.

With many economists expecting low inflation to continue, the situation may not change.

They expected inflation to be 4.1pc over the coming year, down from a three-year high of 4.2pc in August.

"But they have higher rates for a reason - because people there expect inflation."

They both expect inflation, running at less than 3 percent this year, to remain in check.

As such, traders continue to expect inflation to pick up later this year.

There is absolutely no reason to expect inflation to rise above the current 3 percent.