Predicting consumer price index in Saudi Arabia

Thabani Nyoni

MPRA Paper from University Library of Munich, Germany

Abstract: This paper uses annual time series data on CPI in Japan from 1963 to 2017, to model and forecast CPI using the Box – Jenkins ARIMA technique. Diagnostic tests indicate that the Y series is I (2). The study presents the ARIMA (0, 2, 1) model for predicting CPI in Saudi Arabia. The diagnostic tests further imply that the presented optimal model is actually stable and acceptable for predicting CPI in Saudi Arabia. The results of the study apparently show that CPI in Saudi Arabia is likely to be relatively high in the next decade. The study encourages policy makers to make use of tight monetary and fiscal policy measures in order to deal with inflation in Saudi Arabia.

Keywords: Forecasting; Inflation; Saudi Arabia (search for similar items in EconPapers)
JEL-codes: C53 E31 E37 E47 (search for similar items in EconPapers)
Date: 2019-02-15
New Economics Papers: this item is included in nep-ara, nep-mac and nep-mon
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:92422

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