All
Outcomes
Market
Price
AI Fair
Value
Value
Edge
3.3%
YesNo
2.8%
YesNo
3.2%
YesNo
≥3.4%
YesNo
2.9%
YesNo
2.7%
YesNo
≤2.6%
YesNo
3.1%
YesNo
3.0%
YesNo
AI Insights:
03.11 22:39 UpdatedFair Value Reasoning:
Based on the latest data, Feb 2026 CPI YoY came in at 2.4%. Given the favorable base effect from March 2025 (which had a -0.1% MoM), a normalization of March 2026 MoM (to ~+0.3%) would mechanically push the YoY rate to approx 2.8%. The Cleveland Fed Nowcast stands at 2.87%, further supporting the 2.8%-2.9% range. The market's pricing of 3.0%-3.1% (implying a hot +0.6% MoM) is fundamentally overpriced and disconnected from the trend.
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Hedging
US 10Y Yield
DXY
BTC
Gold
S&P 500
CPI data directly influences Fed monetary policy expectations. Data deviating from market consensus triggers immediate repricing in US Treasury Yields (US 10Y Yield) and the Dollar Index (DXY), causing significant volatility in risk assets like equities (S&P 500) and cryptocurrencies (BTC). This is a classic macro trading event.
Divergence
Significant divergence. Market prices imply 3.0% and 3.1% are the favorites (combined implied prob >70%), requiring a sharp acceleration in inflation. However, mainstream models (Cleveland Fed Nowcast at 2.87%) and recent actuals (Feb at 2.4%) point to a moderate 2.8%-2.9% range. The market is pricing in an unsubstantiated hawkish scenario.