Why does Gzip not work on Chrome?

I am trying to see the effects of gzip on my website. Currently, I am using flask and I put a print statements to observe the effects of gzip:

def compress(self, app, response):
    gzip_buffer = BytesIO()
    print "Before compress", len(response.get_data())
    with GzipFile(mode='wb',
                  compresslevel=app.config['COMPRESS_LEVEL'],
                  fileobj=gzip_buffer) as gzip_file:
        gzip_file.write(response.get_data())
    print "After compress", len(gzip_buffer.getvalue())
    return gzip_buffer.getvalue()

My terminal prints,

Before compress 2653151
After compress 58912

However, when I open up chrome developer tools, I am not seeing the effects of gzip being registered:

And this is the request:

Is there an explanation for this?