Can Demographics improve the forecast accuracy of Inflation? Evidence from United Kingdom
This paper seeks to determine whether demographics can increase the forecasting accuracy of United Kingdom’s inflation rate. Five forecasting models were employed, namely: the benchmark ARMA model, the SW (2002) model with and without a demographic factor and the FHLR(2003) model with and without a demographic factor. Both the out of sample and the in-sample forecast results indicates that, factor
