As stated on the site:
Using estimates derived from Treasury Inflation-Protected Securities (TIPS) markets, described in a technical appendix, this weekly report provides two measures of the probability of consumer price index (CPI) deflation through 2022.A chart shows the trends of the probabilities. As one can see in the chart, the readings are volatile.
As for the current weekly reading, the July 6, 2017 update states the following:
The 2017–22 deflation probability was 6 percent on July 5, unchanged from June 28. The 2016–21 deflation probability was 0 percent on July 5, also unchanged from June 28. These 2016–21 and 2017–22 deflation probabilities, measuring the likelihoods of net declines in the consumer price index over the five-year periods starting in early 2016 and early 2017, are estimated from prices of the five-year Treasury Inflation-Protected Securities (TIPS) issued in April 2016 and April 2017 and the 10-year TIPS issued in July 2011 and July 2012._________
I post various economic indicators and indices because I believe they should be carefully monitored. However, as those familiar with this site are aware, I do not necessarily agree with what they depict or imply.
The Special Note summarizes my overall thoughts about our economic situation
SPX at 2409.75 this post is written