Munich Personal RePEc Archive

Forecasting inflation in Burkina Faso using ARMA models

NYONI, THABANI (2019): Forecasting inflation in Burkina Faso using ARMA models.

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Abstract

This research uses annual time series data on inflation rates in Burkina Faso from 1960 to 2017, to model and forecast inflation using ARMA models. Diagnostic tests indicate that B is I(0). The study presents the ARMA (2, 0, 0) model, which is nothing but an AR (2) model. The diagnostic tests further imply that the presented optimal ARMA (2, 0, 0) model is stable and acceptable. The results of the study apparently show that W will be approximately 4% by 2020. Policy makers and the business community in Burkina Faso are expected to take advantage of the anticipated stable inflation rates over the next decade.

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