Forecasting Inflation in Sudan

26 Pages Posted: 30 Jun 2009

See all articles by Kenji Moriyama

Kenji Moriyama

International Monetary Fund (IMF)

Abdul Naseer

International Monetary Fund (IMF) - IMF Institute

Date Written: June 2009

Abstract

This paper forecasts inflation in Sudan following two methodologies: the Autoregressive Moving Average (ARMA) model and by looking at the leading indicators of inflation. The estimated ARMA model remarkably tracks the actual inflation during the sample period. The Granger causality test suggests that private sector credit and world wheat prices are the leading indicators explaining inflation in Sudan. Inflation forecasts based on both approaches suggest that inflationary pressures for 2009 and 2010 will be modest and that inflation will remain in single-digits, assuming that prudent macroeconomic policies are maintained.

Keywords: Central banks, Commodity price fluctuations, Credit expansion, Data analysis, External shocks, Forecasting models, Inflation, Inflation targeting, Monetary policy, Money supply, Private sector, Sudan, Wheat

Suggested Citation

Moriyama, Kenji and Naseer, Abdul, Forecasting Inflation in Sudan (June 2009). IMF Working Paper No. 09/132, Available at SSRN: https://ssrn.com/abstract=1426451

Kenji Moriyama (Contact Author)

International Monetary Fund (IMF) ( email )

Abdul Naseer

International Monetary Fund (IMF) - IMF Institute ( email )

700 19 th Street NW
Washington, DC 20431
United States

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