Draghi Effect Subsides as Pressure Builds on ECB Chief

Mario Draghi’s stimulus pledge didn’t convince investors for long.

Exactly one month since the European Central Bank president told his global peers he was ready to act to avert deflation in the euro area, bets on consumer prices have collapsed. Even after surprise interest-rate cuts and an asset-purchase program, inflation expectations fell to an almost four-year low and business surveys this week may show a faltering economy.