How to forecast inflation?

To forecast inflation, there are several approaches you can take. One method is to analyze the historical relationship between inflation and other economic variables, such as the unemployment rate, GDP growth, and interest rates. Another approach is to use econometric models that estimate the relationship between inflation and these variables. Additionally, you can monitor leading economic indicators, such as consumer and producer price indices, to gauge the direction of inflation. It’s also important to stay informed about global economic trends, as inflation can be influenced by factors such as international trade and commodity prices. Ultimately, forecasting inflation is an ongoing process that requires careful analysis and monitoring of a wide range of economic data and trends.

The effects of inflation are often not directly felt but are played out over a long time, especially long-term investments are vulnerable to inflation.


At Horizon65, we created a mobile app that enabled you to check the effect of inflation on your savings.

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