A Novel Approach for Inflation Analysis Using Hidden Markov Model

Inflation is a major issue to be considered for the development of any nation as well as having great influence on worldwide economy. In this paper, we present a novel approach to analyze inflation data of a given time using HMM. HMM is being used for several computational problems in real life applications. Although, HMM is not a perfect way to predict future events. Here we use HMM, that is trained on the past dataset. The trained HMM is used to search for behavioral data pattern from a given dataset. Output obtained using HMM are really inspiring and HMM offers a new paradigm for inflation analysis.