The United States Consumer Price Index ( “Inflation” ) is calculated by the U.S. Bureau of Labor Statistics. It has gone through various periods of prominent increases; notably in the 1920’s, 1940’s, & 1970’s. Otherwise, it has remained relatively constant or declining.
Inflation is important in all facets of life but the financial world pays special attention to it. The key objectives of the Federal Reserve are maximizing employment, stabilizing prices & moderating long-term interest rates; the second of which is Inflation & the third of which is generally decided by the condition of the other two ( 2 ), usually Inflation. Their decisions can move financial markets around the world.
In short, Inflation is an important component of developing investment strategies for portfolios across the world. The view on inflation becoming positive or negative is not agreed upon nor are the variables which influence it.
The purpose of this Data Science project is to develop a model to explain & understand the phenomenon of Inflation. I shortlisted nineteen ( 19 ) variables to determine their influence on Inflation since 1991.
In the enclosed you will find:
- data
- This is where the data is stored
- notebooks
- This is where the source code is stored
- reports
- A Presentation & Report is stored here summarizing the findings
- As the name suggests, the Presentation was prepared as a presentation; thus, I suggest that it is downloaded & viewed as a PDF, not on GitHub
- A Presentation & Report is stored here summarizing the findings