Macroeconomics

Breakeven Inflation Rate

Definition

What is Breakeven Inflation Rate?

The difference between nominal and inflation-linked bond yields of similar maturity, used as a market inflation gauge.

Example in practice

A five-year breakeven of 12% reflects the market's priced inflation expectation plus risk premiums.

Keep learning

The total market value of final goods and services produced within a country during a period.

Gross domestic product adjusted for changes in prices.

Gross domestic product measured at current prices without adjusting for inflation.

A market environment in which investors favour higher-risk assets.

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