17 Pages Posted: 17 Apr 2008
Date Written: January 27, 2008
This paper forecasts inflation in China over a 12-month horizon. The analysis runs 15 alternative models and finds that only those considering many predictors via a principal component display a better relative forecasting performance than the univariate benchmark.
Keywords: inflation forecasting, data-rich environment, principal components, China
JEL Classification: C53, E31
Suggested Citation: Suggested Citation
Mehrotra, Aaron N. and Sánchez-Fung, José R., Forecasting Inflation in China (January 27, 2008). BOFIT Discussion Paper No. 2/2008. Available at SSRN: https://ssrn.com/abstract=1121762 or http://dx.doi.org/10.2139/ssrn.1121762