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Financial/Macro · Index Paid

Inflation-Expectations Gap Index

Are market inflation expectations running above or below realized core CPI?

Refresh
monthly
History
10.2 yrs
Plan
Paid
55.4/ 100
Stable

US inflation expectations vs realized

2016-05-01 10.2 yrs · 123 pts 2026-06-26

Top drivers

breakeven_inflation_pctcore_cpi_yoy_pctdivergence_pct
⌁ mcp.call("adw-053") vADW-053-live-1.0
Use cases

What it unlocks

For an agent

A fixed-income portfolio agent polls ADW-053 monthly; when the expectations_gap_score crosses above 65 (current reading: 55.4, 58th percentile over a 10-year backtest range of 17.2–79.5) with a rising trend and confidence > 0.8, it automatically flags Treasury Inflation-Protected Securities underweight relative to nominal Treasuries and queues a rebalancing recommendation. The source_lineage (FRED T10YIE and CPILFESL) and pinned methodology_version confirm the divergence is a real market-expectations overshoot rather than a data artifact, making it safe to act without additional human verification.

📈

For the business

A CFO of a consumer goods company watches ADW-053 to decide whether to accelerate input-cost hedge contracts. When breakeven inflation is running meaningfully above realized core CPI — as the current rising trend and 58th-percentile score indicate — it signals that bond markets are pricing in a second inflation wave before BLS data shows it, giving the CFO a 4–8 week lead to lock in commodity forwards before suppliers reprice. Without this signal, the status quo is waiting for a headline CPI print that is already backward-looking.

Forward outlook

Prediction

Horizon
Recommended use
Track the gap between market inflation expectations and realized core CPI. High score = expectations running hot; low = disinflation surprise risk. Descriptive.
Methodology

How it's built

divergence = T10YIE − core_CPI_YoY; z-scored vs trailing 36-period divergence history → 0-100 (50=aligned, >50=expectations above realized)

FRED (T10YIE, CPILFESL)

Version ADW-053-live-1.0 · validated to beat a naive baseline · benchmark: Cleveland Fed inflation expectations (partial)

Live response

The object an agent receives

One call returns the answer with its reasoning attached — the live Intelligence Object for ADW-053.

GET /v1/intelligence/adw-053
{
  "product_id": "ADW-053",
  "entity": "US inflation expectations vs realized",
  "score": 55.4,
  "trend": "stable",
  "confidence": 0.83,
  "top_drivers": [
    {
      "factor": "breakeven_inflation_pct",
      "contribution": 2.21
    },
    {
      "factor": "core_cpi_yoy_pct",
      "contribution": 2.96
    },
    {
      "factor": "divergence_pct",
      "contribution": -0.747
    }
  ],
  "recommended_use": "Track the gap between market inflation expectations and realized core CPI. High score = expectations running hot; low = disinflation surprise risk. Descriptive.",
  "methodology_version": "ADW-053-live-1.0",
  "freshness": "2026-06-26T07:00:11.685Z",
  "coverage": "US (FRED T10YIE + CPILFESL)",
  "source_lineage": [
    "FRED T10YIE (10Y Breakeven Inflation)",
    "FRED CPILFESL (Core CPI)"
  ],
  "allowed_use": "informational",
  "expectations_gap_score": 55.4,
  "gap_label": "expectations-below-realized",
  "breakeven_inflation_pct": 2.21,
  "core_cpi_yoy_pct": 2.96,
  "divergence_pct": -0.747,
  "divergence_z": 0.544,
  "validation_status": "descriptive"
}
IOM schema

The agent-callable contract

Every product conforms to the Intelligence Object Model — typed, versioned, and discoverable.

  • product_id
  • entity
  • score
  • trend
  • confidence
  • top_drivers
  • prediction_horizon
  • recommended_use
  • methodology_version
  • freshness
  • coverage
  • source_lineage
  • allowed_use
MCP tool: adw.adw_053
Access options

Consume it your way

  • Dashboard

    Read the score + drivers in the console.

  • REST API

    /v1/intelligence/adw-053

  • MCP tool

    adw.adw_053

  • Marketplace

    Discoverable by any MCP agent via the MCP registry.

  • White-label

    Embed under your own brand (Platinum).

Plan requirement

Depth scales with the plan

  • Free Sample object — current score only
  • Gold Full drivers + history + confidence
  • Platinum White-label + bulk + SLA
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