classical criteria, as well as forecast combination techniques with constant and non-constant weights. With respect to the … standard GARCH specification, the non-linear models generally lead to better forecasts in terms of both smaller forecast errors … and lower biases. In-sample forecast combination regressions are better than those from single Mincer …

The purpose of the paper is to introduce the framework for decomposing the forecast of headline inflation, obtained by … inflation forecast, with relatively good fit of equations for food and domestic oil prices. This model serves as satellite model …