How to forecast the inflation rate?

Forecasting the inflation rate can be challenging, but there are several methods that economists and analysts use to try to predict future inflation. Some of the most common methods include analyzing economic indicators such as gross domestic product (GDP), unemployment rates, and consumer price index (CPI) data, as well as monitoring market expectations for inflation and tracking government policies and actions that may impact inflation. Additionally, various statistical models can be employed to help forecast inflation, such as time-series models, vector autoregression (VAR) models, and econometric models. Overall, accurately forecasting inflation requires careful analysis of multiple data sources and a deep understanding of economic trends and drivers.

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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