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https://rda.sliit.lk/handle/123456789/3635| Title: | Forecasting Consumer Price Index in the United States |
| Authors: | Witharana, W. W. S. K Udugama, U. K. D. T. N. Fernando, P. M. R., Kaumadi, H. M. H. Peiris, T. S. G. |
| Keywords: | ARIMA Consumer price index Forecasting Box Jenkins Time series analysis |
| Issue Date: | 1-Nov-2023 |
| Publisher: | Faculty of Humanities and Sciences, SLIIT |
| Citation: | Witharana, W. W. S. K., Udugama, U. K. D. T. N., Fernando, P. M. R., Kaumadi, H. M. H., Peiris, T. S. G. (2023). Forecasting Consumer Price Index in the United States. Proceedings of SLIIT International Conference on Advancements in Sciences and Humanities, 1-2 December, Colombo, pages 290- 295. |
| Series/Report no.: | Proceedings of the 4th SLIIT International Conference on Advancements in Sciences and Humanities; |
| Abstract: | This report presents the Auto-Regressive Integrated Moving Average (ARIMA) model for forecasting the consumer price index (CPI) in US using monthly data from March 2010 to March 2023. The original series was not stationary, but the first difference series was found to be stationary using the Augmented Dicky Fuller test. The best-fitted model was identified based on the significance of the parameters, volatility (sigma2), log-likelihood, Akaike, Schwartz, and Hannan- Quinn information criterion. Parameters of the fitted model are significantly deviated from zero. The stability of the model has been checked using the roots of the unit root test. Residuals of the fitted model satisfied the randomness but nonconstant variance. The monthly forecasted values of CPI from April 2023 to August 2023 are 301.833, 302.444, 303.038, 303.639, and 304.261. The percentage errors of the forecasted values are less than one percent. This method and results provide useful information to policy and market makers for their planning, |
| URI: | https://rda.sliit.lk/handle/123456789/3635 |
| ISSN: | 2783-8862 |
| Appears in Collections: | Proceedings of the SLIIT International Conference on Advancements in Science and Humanities2023 [ SICASH] |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| 319-324 Forecasting Consumer.pdf | 1.39 MB | Adobe PDF | View/Open |
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