If they did, we would see a lot more signs of people anticipating higher inflation.

If investors anticipate future inflation, however, they will demand higher interest rates on government debt, making public borrowing more expensive.

"Giving cash infusions without anticipating inflation, growth or the cost of school reform may win you the short-term battle, but you don't win the war."

Brazilian monetary policy, based on inflation targets, anticipates inflation of 6 percent this year.

Bonds and the dollar also rose, with traders anticipating stable interest rates, low inflation and higher corporate earnings.

But workers don't anticipate inflation.

Rather than anticipate rising inflation, the policy makers now prefer to wait for evidence before acting.

Bulls reply that the opportunity will be for those who properly anticipate inflation before it's making headlines.

Hence, private agents know that if they anticipate low inflation, an expansionist policy will be adopted that causes a rise in inflation.

Economists, however, say the market may be right in anticipating inflation, or at least another round of inflation anxiety, sometime before the end of the second quarter.