Use the monthly series on the Consumer Price Index (all items) from the previous two years to produce a forecast of the CPI for each

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Use the monthly series on the Consumer Price Index (all items) from the previous two years to produce a forecast of the CPI for each of the next three years. Is the precision of your forecast greater or less at 36 months ahead than at 12 months ahead? Why? Compare your answer to that of Moody’s on-line U.S.

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Monthly data on CPI are available from many places One convenient place is httpresearchstlouisfedorgfred2 from the St Louis Federal Reserve Bank This ... View full answer

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