Market measures of future levels of inflation have climbed to a decade high this month, as investors digested company reports on how tangled supply chains, pent-up demand and rising energy prices were affecting their businesses.

The 10-year “break-even” inflation rate, derived from US inflation-protected government securities, rose to 2.62 per cent on Thursday, its highest level since September 2012 and above the Federal Reserve’s long-run inflation target of 2 per cent. The five-year break-even rate rose to 2.86 per cent on Thursday, the highest since March 2005.

Surging energy costs have propelled inflation measures higher in recent weeks, compounding pressures from supply chain disruptions that have hobbled companies seeking to deliver goods as economies recover from the coronavirus pandemic.