Trans$-$Atlantic Quotes. Separated by more than $3,000$ nautical miles and five time zones, money and foreign exchange markets in both London and New York are very efficient. The following information has been collected from the respective areas:

a$.$ What do the financial markets suggest for inflation in Europe next year?

b$.$ Estimate today's $1-$year forward exchange rate between the dollar and the euro.

a$.$ What do the financial markets suggest for inflation in Europe next year?

The rate the financial markets suggest for inflation in Europe next year is $\%.($Round to three decimal places.$)$

Data table

$($Click on the following icon $$ in order to copy its contents into a spreadsheet.$)$

ex

$\backslash$table$[[,$London,New York$],[$Spot exchange rate $($USD $=$ EUR$1\mathrm{.}00),1\mathrm{.}3262,1\mathrm{.}3262],[1-$year Treasury bill rate,$3\mathrm{.}904\%,4\mathrm{.}499\%$