Kalshi Prediction Markets Deliver 40% Lower Error in Inflation Forecasts Than Wall Street Over 25 Months
COINOTAG News, citing Coindesk, reports that prediction markets on inflation outpaced Wall Street consensus over a 25‑month window. The study shows an average error roughly 40% lower than conventional forecasts, illustrating the wisdom of the crowd at work as diverse traders respond to evolving incentives. The result positions market-based predictions as a credible, complementary signal for institutions navigating uncertainty.
From February 2023 to mid‑2025, Kalshi’s CPI year‑over‑year projections reportedly beat Wall Street consensus, with larger margins during data surprises. In divergence episodes, accuracy rose by as much as 67%, underscoring how prediction markets can inform risk management and strategic planning alongside traditional economists.