🏛 Central Banks & Macro mixed · 6–18 months
A what‑if from the future

What if a weak pound and poor harvests drive UK food inflation sharply higher?

A weak pound, poor harvests and high input costs drive UK food inflation sharply higher, a key driver of the BoE's cost-of-living stress on household real incomes.

9%
our model probability
over 6–18 months
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 9% · 90% range 0–19% · 40 analogues · measured class monetary_order 99% in 18 mo · 3% held back for the unknown
how we built this number — every step
Measured class rate — monetary_order ≈2.8549/yr → 99% in 18 mo99%
Analyst prior · editorial share 8% of the class8%
Pooled · weight 87%9%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)9%
Published9%

The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.

The butterfly cascade

How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.

Resolution timeline — how this probability is moving

Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 6–18 months horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.

loading the timeline…

What it would mean

If this plays out, it is a mixed shock. A weak pound, poor harvests and high input costs drive UK food inflation sharply higher, a key driver of the BoE's cost-of-living stress on household real incomes. The trigger decomposes into signed root‑shocks — US dollar (DXY) ▲ · Consumer spending ▼ · Food inflation ▲ · Inflation surprise ▲ — which propagate through our causal graph to the markets below.

If it happens — the markets it would move

Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.

MarketClassProjected move
1US dollar (DXY) DXYon Hyperliquid 📈 chartFX▲ +0.5%
hist -0.04–+0.8% · other way +0.79% (n=10)
2EUR/USD EURUSDon Hyperliquid 📈 chartFX▼ -0.5%
hist -0.86–+0.1% · other way -1.16% (n=8)
3Turkish lira TRY 📈 chartFX▼ -0.5%
hist -2.63–+0.98% · other way +1.31% (n=8)
4Gold XAUon Hyperliquid 📈 chartCommodity▼ -0.4%
hist -1.48–+0.42% · other way +2.43% (n=9)
5Indian rupee INR 📈 chartFX▼ -0.4%
hist -0.27–-0.14% · other way +0.47% (n=8)
6GBP/USD GBPUSDon Hyperliquid 📈 chartFX▼ -0.4%
hist -0.83–+0.12% · other way -1.06% (n=8)
7USD/JPY USDJPYon Hyperliquid 📈 chartFX▲ +0.3%
hist -0.01–+0.45% · other way -0.21% (n=10)
8Korean won KRWon Hyperliquid 📈 chartFX▼ -0.2%
hist -0.18–-0.08% · other way -0.46% (n=8)
9MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -0.3%
hist -1.0–+1.62% · other way -3.44% (n=10)
10Chinese yuan CNY 📈 chartFX▼ -0.2%
hist -0.5–+0.08% · other way +0.03% (n=8)
11Aussie dollar AUD 📈 chartFX▼ -0.2%
hist -0.66–+0.21% · other way -0.53% (n=7)
1230y Treasury yield DGS30 📈 chartRate▲ +2bp
hist -2.8–+8.88% · other way +5.5% (n=10)
1310y Treasury yield DGS10 📈 chartRate▲ +2bp
hist -2.25–+7.85% · other way +4.5% (n=10)
14Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -0.2%
hist -0.6–+0.16% · other way -1.45% (n=10)

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
For a common-man portfolio: Mixed for a typical portfolio — the move is more about rotation than direction. Favour the winners over the losers below rather than net exposure.
Also moves (not yet on Hyperliquid): Turkish lira -0.5% · Indian rupee -0.4% · Chinese yuan -0.2% · Aussie dollar -0.2% · 30y Treasury yield +2bp · 10y Treasury yield +2bp

Historical precedent — what analogous events actually did

Across 40 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.

Volcker Shock 1979-10 Iranian Revolution oil shock 1978-12 Nixon Shock 1971-08 Iranian rial slides to a new record low 2025-12 H5N1 bird flu record US egg prices 2025-04 Nasdaq Composite first close above 20000 2024-12 Henry Hub natural gas falls to an all-time inflation-adjusted low on record output 2024-11 Homebuilders rally as cool June CPI fuels rate-cut bets 2024-07 USD/JPY hits a 38-year high before a CPI-driven intervention 2024-07 Hot January CPI delays Fed-cut hopes 2024-02 Cool October 2022 CPI sparks huge bond-and-bank rally 2022-11 Hot September 2022 CPI sends yields and curve to cycle extremes 2022-10 August 2022 hot CPI 2022-09 Powell's hawkish 'pain' speech at Jackson Hole 2022-08 Inflation Reduction Act signed into law 2022-08 June 2022 CPI prints 9.1% 2022-07 May 2022 US CPI sends S&P into a bear market 2022-06 Sri Lanka suspends external debt payments 2022-04 Russia central-bank reserves frozen 2022-02 Bank of England's first post-pandemic rate hike 2021-12 Fed retires 'transitory' 2021-11 Turkish lira record low on rate cuts 2021-11 October 2021 US CPI shock 2021-11 European gas crisis intraday record spike 2021-10 Federal Reserve adopts average inflation targeting at Jackson Hole 2020-08 February 2018 hot wage print triggers rate scare 2018-02 Bank of Japan introduces Yield Curve Control 2016-09 India RBI flexible inflation-targeting framework 2015-02 Bank of Japan Kuroda QQE 'bazooka' 2013-04 Vietnam dong 9.3% devaluation 2011-02 Crude oil all-time high 2008-07 ECB's ill-timed pre-crisis rate hike 2008-07 Euro trading debut 1999-01 Bank of England granted operational independence 1997-05 Brazil Plano Real launches the real 1994-07 Black Wednesday 1992-09 Argentina Convertibility Plan 1991-04 Peru Fujishock stabilization 1990-08 1990-91 recession onset 1990-07 Brazil Collor Plan asset freeze 1990-03
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
USDJPY USDJPYLONG+0.3% · 5d +0.1%61%31 0.22✓ matches cascade
GBPUSD GBPUSDSHORT-0.6% · 5d +0.2% ↺ fades59%29 0.15✓ matches cascade
US dollar DXYLONG+0.5% · 5d +0.0%58%40 0.14✓ matches cascade
CNY CNYSHORT-0.4% · 5d -0.0%55%29 0.10✓ matches cascade
EURUSD EURUSDSHORT-0.6% · 5d +0.1% ↺ fades55%29 0.09✓ matches cascade
Gold XAUSHORT-1.2% · 5d -0.5%55%29 0.09✓ matches cascade
High-yield credit HYGLONG+0.2% · 5d +0.1%55%29 0.08·
Volatility VIXSHORT-0.1% · 5d +2.4% ↺ fades54%37 0.07·
10y yield DGS10LONG+6bp · 5d +4bp53%40 0.06✓ matches cascade
NDX NDXSHORT-0.5% · 5d -0.9%54%37 0.06✓ matches cascade
Bitcoin BTCLONG+1.3% · 5d -3.9% ↺ fades52%25 0.03·
30y yield DGS30LONG+7bp · 5d +3bp51%39 0.02✓ matches cascade
TRY TRYSHORT-2.3% · 5d +1.0% ↺ fades48%29 0.00✓ matches cascade
INR INRLONG+0.0% · 5d +0.3%48%29 0.00⚠ differs

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Crowd odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-07-03.