Home           Contact us           FAQs           
 
   Journal Page   |   Aims & Scope   |   Author Guideline   |   Editorial Board   |   Search
    Abstract
2012 (Vol. 4, Issue: 3)
Article Information:

Empirical Approach to Modelling and Forecasting Inflation in Ghana

Nasiru Suleman and Solomon Sarpong
Corresponding Author:  Nasiru Suleman 

Key words:  Box-Jenkins, empirical, Ghana, inflation, , ,
Vol. 4 , (3): 83-87
Submitted Accepted Published
April 13, 2012 May 06, 2012 June 30, 2012
Abstract:

Inflation measures the relative changes in the prices of commodities and services over a period of time. In other to devise better policies to control the inflation rates it is necessary to know the pattern of inflation in the country. In this study, we employed an empirical approach to modelling monthly data in Ghana using the Box-Jenkins approach. The result showed that ARIMA (3, 1, 3) (2, 1, 1)12 model was appropriate for modelling the inflation rates. This model has the maximum log-likelihood of 242.90 and the least AIC of -465.80, AICc of -464.89, BIC of -430.51, RMSE of 0.080, MAPE of 1.902 and MAE of 0.054. Diagnostic test of the model residuals with the ARCH LM-test and Durbin-Watson test indicates that there was no ARCH effect and autocorrelation in the residuals respectively. Finally, an 11 months forecast for the year 2012 with the model revealed that Ghana is likely to experience single digit inflation values. Hence, we recommend that government and other policy makers should adopt appropriate measures to ensure that the objective of achieving single digit inflation value is met.
Abstract PDF HTML
  Cite this Reference:
Nasiru Suleman and Solomon Sarpong, 2012. Empirical Approach to Modelling and Forecasting Inflation in Ghana.  Current Research Journal of Economic Theory, 4(3): 83-87.
    Advertise with us
 
ISSN (Online):  2042-485X
ISSN (Print):   2042-4841
Submit Manuscript
   Current Information
   Sales & Services
   Contact Information
  Executive Managing Editor
  Email: admin@maxwellsci.com
  Publishing Editor
  Email: support@maxwellsci.com
  Account Manager
  Email: faisalm@maxwellsci.com
  Journal Editor
  Email: admin@maxwellsci.com
  Press Department
  Email: press@maxwellsci.com
Home  |  Contact us  |  About us  |  Privacy Policy
Copyright © 2009. MAXWELL Science Publication, a division of MAXWELLl Scientific Organization. All rights reserved