Table 5

In-sample forecast results by CPI

CategoryBaseline 12–21aARIMA 12–21bVAR1 12–21cVAR2 12–21dAvg.eCVf
Food7.17%6.19%3.47%6.68%5.88%0.28
Food at home8.01%7.21%2.64%8.02%6.47%0.40
Meats, poultry, fish13.11%12.85%6.01%13.76%11.43%0.32
Meats14.91%14.18%5.48%15.50%12.52%0.38
Beef and veal16.12%16.90%4.14%18.25%13.85%0.47
Pork19.29%14.77%8.06%16.87%14.75%0.33
Poultry10.50%11.73%8.70%11.74%10.67%0.13
Fish and seafood9.43%9.42%5.44%9.63%8.48%0.24
Eggs2.01%10.63%−2.67%16.00%6.49%1.29
Dairy6.02%1.63%−6.56%3.85%1.24%4.45
Fats and oils8.84%7.43%1.28%8.58%6.53%0.54
Fruits and vegetables5.18%5.28%6.97%7.48%6.23%0.19
Fresh fruits, vegetables4.22%6.44%9.18%7.65%6.87%0.30
Fresh fruits2.75%9.45%2.16%10.32%6.17%0.70
Fresh vegetables5.86%3.60%17.79%4.77%8.01%0.82
Cereals and bakery products6.23%5.54%0.75%5.69%4.55%0.56
Nonalcoholic beverages9.81%8.57%3.48%7.41%7.32%0.37
Other foods6.30%5.99%2.90%6.73%5.48%0.32

Note(s):aThe percentage difference between the CPI value in December 2021 with the forecasted value for December 2021 using the regression method

bThe percentage difference between the CPI value in December 2021 with the forecasted value for December 2021 using the ARIMA method

cThe percentage difference between the CPI value in December 2021 with the forecasted value for December 2021 using the VAR models with PPIs

dThe percentage difference between the CPI value in December 2021 with the forecasted value for December 2021 using the VAR method without PPIs

eThe average of a, b, c, and d

fThe coefficient of variation for all three forecast estimates, calculated as the standard deviation divided by the mean

In some cases, the index names are abbreviated to conserve space and improve readability

Source(s): Authors' calculations using data from the US bureau of labor statistics

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