Modeling and Forecasting Inflation in Ethiopia Using Multivariate Time Series Analysis
Inflation is one of the basic indicators of macroeconomic stability, influences numerous other macroeconomic factors and it debilitates the economy of the country. Thus, in this study, the major objective was based on modelling and forecast inflation in Ethiopia and its components using a VAR model. all five series exhibited an increasing pattern, indicating non-stationarity in each of the series. The analysis was based on annually data from 1992 to 2021, encompassing 30 years. The results in...