In this paper we apply a dynamic factor model to generate out of sample forecasts for the inflation rate in Mexico. We … disaggregated data to forecast inflation. Our data set contains 54 macroeconomic series and 243 CPI subcomponents from 1988 to 2008 … key variables in the economy such as output growth and inflation. -- Factor models ; Inflation forecasting ; Disaggregate …

statistics in forecasting inflation has often been relegated to simple univariate or Phillips curve approaches, thus limiting … extreme trimmed-mean measure - the median CPI - improves the forecasts of both core and headline inflation (CPI and personal … consumption expenditures) across our set of monthly and quarterly BVARs. Although the inflation forecasting improvements are …

statistics in forecasting inflation has often been relegated to simple univariate or Phillips curve approaches, thus limiting … extreme trimmed-mean measure—the median CPI—improves the forecasts of both core and headline inflation (CPI and personal … consumption expenditures) across our set of monthly and quarterly BVARs. Although the inflation forecasting improvements are …