Which variables predict Indonesia?s inflation?

Deskripsi

We use an exhaustive list of Indonesia?s macroeconomic variables in a comparative analysis to determine which predictor variables are most important in forecasting Indonesia?s inflation rate. We use monthly time-series data for 30 macroeconomic variables. Using both in-sample and out-of-sample predictability evaluations, we report consistent evidence of inflation rate predictability using 11 out of 30 macroeconomic variables..