Now markets have delivered their verdict on inflation - it's not picking up any time soon - economic data due next week will show whether price pressures are rising meaningfully or falling back in some of the world's major economies.
A global rout in stock markets, currencies, commodities and bond yields has so far defined 2016 as investors have seemingly lost faith in central banks' abilities to boost inflation, with signs the world economy is stalling.
Five-year inflation-linked swaps in the euro zone EUIL5YF5Y=R, for example, suggest annual price growth will be just 1.4 percent even as far out as 2021.
"Most people don't understand what has spooked markets. It's up to economic data now to demonstrate that markets have gone overboard in projecting very low inflation," said Jeavon Lolay, head of economics at Lloyds Banking Group.
"One reason is probably that markets don't believe the response from policymakers is adequate."
The Bank of Japan surprised markets late last month by cutting its deposit rate to negative. But the impact seems limited to some knee-jerk weakening in the Japanese yen JPY=.
Sweden's Riksbank also slashed its repo rate to -0.50 percent on Thursday, partly as insurance against expectations that the European Central Bank would ease policy in March.
Inflation data from Britain, Canada, China and the United States next week may set the tone for the global economy.
While Reuters polls suggest at best tepid price rises, market watchers will look at the underlying trends in inflation to gauge whether another round of policy easing and stimulus is warranted.
Federal Reserve Chair Janet Yellen hinted this week the path to higher interest rates in the United States may be less steep than previously thought, given the broad market sell-off.
It's not that the outlook for inflation in developed economies has changed dramatically in the past three months in polls conducted by Reuters.
But a 75 percent crash in oil prices CLc1 since mid-2014, and weak global demand, led by China's slowing economy, have dragged down market inflation gauges like swaps and sovereign bond yields, with vast swathes now showing negative yields.
The yield of Germany's benchmark bunds DE10YT=RR has fallen over 40 basis points since January to its lowest in nearly a year, while Tokyo's Nikkei 225 index .N225 and the S&P 500 .SPX in the U.S. have fallen over 20 percent and 10 percent respectively.
Reference: Reuters
Read More: http://www.reuters.com/
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