Journal Article

A Forecasting Assessment of Market-Based PCE Inflation


Abstract: This article explores the potential for market-based inflation measures to improve inflation forecasting. To do so, I compare the pseudo-real time forecasting performance of a suite of models for forecasting total or “headline” PCE inflation over the short and medium run. In the forecasting exercise, a simple model using only market-based core PCE inflation showed the best forecasting performance at all horizons.

https://doi.org/10.26509/frbc-ec-202001

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Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Economic Commentary

Publication Date: 2020-01-14

Volume: 2020

Issue: 01