5-Year, 5-Year Forward Inflation Expectation Rate
Monthly
T5YIFRM • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
2.32
Year-over-Year Change
-1.69%
Date Range
1/1/2003 - 7/1/2025
Summary
The T5YIFRM represents the 5-Year, 5-Year Forward Inflation Rate, a critical market-based measure of long-term inflation expectations. This metric provides economists and policymakers with insights into how financial markets anticipate future inflation trends.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The 5-Year, 5-Year Forward Inflation Rate is derived from Treasury Inflation-Protected Securities (TIPS) and nominal Treasury yields, reflecting market participants' inflation expectations over a forward-looking period. Economists use this indicator to assess potential inflationary pressures and monetary policy effectiveness.
Methodology
The rate is calculated by comparing the yields of nominal Treasury bonds and inflation-protected securities, adjusted to project expected inflation rates five years into the future.
Historical Context
Central banks like the Federal Reserve closely monitor this metric to gauge market sentiment and inform monetary policy decisions.
Key Facts
- Represents market-based long-term inflation expectations
- Derived from Treasury securities pricing
- Important indicator for monetary policy decision-making
FAQs
Q: What does the 5-Year, 5-Year Forward Inflation Rate indicate?
A: It shows market expectations of average inflation rates five to ten years in the future, providing insight into long-term economic outlook.
Q: How do investors use this metric?
A: Investors use this rate to understand potential future inflation and make informed investment decisions about fixed-income securities and other financial instruments.
Q: How is this rate calculated?
A: The rate is calculated by comparing yields of nominal Treasury bonds and Treasury Inflation-Protected Securities (TIPS) to extract implied inflation expectations.
Q: Why is this metric important for policymakers?
A: It helps central banks like the Federal Reserve assess market expectations and potentially adjust monetary policy to manage inflation.
Q: How often is this data updated?
A: The T5YIFRM is typically updated monthly, providing a current view of market-based inflation expectations.
Related News
U.S. Stock Market Rises Amid PCE Inflation Report Analysis
U.S. Stock Market Climbs Amidst Insights from PCE Inflation Report Investors in the U.S. stock market are focusing on the most recent PCE Inflation...
Gen Z In the U.S. Shifts From Spending To Saving Habits
How Gen Z's Shift from Spending to Saving is Impacting the US Economy Recent trends indicate a significant shift in the spending habits of Gen Z, w...
S&P 500 Rises With Optimistic U.S. Inflation Report
S&P 500 Soars: Positive U.S. Inflation Developments The S&P 500, a primary stock index that tracks the performance of 500 major U.S. companies, has...
U.S. Stock Futures Stagnant Despite Positive Jobless Claims and GDP
Why US Stock Futures Remain Stagnant Despite Positive Economic Indicators The current investment landscape is puzzling for many as US stock futures...
U.S. Home Sales Decline In August Due To High Prices
August 2023 U.S. Home Sales Decline Amid Rising Mortgage Rates and High Prices In August 2023, U.S. home sales experienced a notable decline, highl...
U.S. Natural Gas Storage Increases Due to Market Dynamics
Navigating Market Volatility: U.S. Natural Gas Storage Strategies and Trends Understanding the dynamics of the U.S. natural gas storage sector is c...
Related Trends
10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
T10Y2Y
5-Year, 5-Year Forward Inflation Expectation Rate
T5YIFR
6-Month Treasury Bill Minus Federal Funds Rate
TB6SMFFM
Moody's Seasoned Aaa Corporate Bond Minus Federal Funds Rate
AAAFF
10-Year Treasury Constant Maturity Minus Federal Funds Rate
T10YFF
5-Year Breakeven Inflation Rate
T5YIE
Citation
U.S. Federal Reserve, Monthly [T5YIFRM], retrieved from FRED.
Last Checked: 8/1/2025