# Forecasting Cost-Push Inflation with LASSO over Ridge Regression

### Sree Nair, N. Deepa

#### 2023

#### Abstract

This study undertook an experimental analysis to forecast Cost-push Inflation using the Novel LASSO regression algorithm, contrasting it with the Ridge algorithm. Moreover, future Consumer Price Index (CPI) values were determined. To achieve maximum accuracy in predicting Cost-Push Inflation, the performance of the Novel LASSO algorithm (N=21) was evaluated against the Support vector regression algorithm (N=21). Sample sizes were determined utilising G-power, considering a pretest power of 0.80 and an alpha of 0.05. Notably, the mean accuracy value for the Novel LASSO algorithm stood at 81.95%, surpassing the Support vector regression algorithmâ€™s 75.57%. Statistical analysis highlighted a significant difference between the two methods (p=0.001, p<0.05), emphasising the superior accuracy of the Novel LASSO approach.

Download#### Paper Citation

#### in Harvard Style

Nair S. and Deepa N. (2023). **Forecasting Cost-Push Inflation with LASSO over Ridge Regression**. In *Proceedings of the 1st International Conference on Artificial Intelligence for Internet of Things: Accelerating Innovation in Industry and Consumer Electronics - Volume 1: AI4IoT*; ISBN 978-989-758-661-3, SciTePress, pages 64-70. DOI: 10.5220/0012559200003739

#### in Bibtex Style

@conference{ai4iot23,

author={Sree Nair and N. Deepa},

title={Forecasting Cost-Push Inflation with LASSO over Ridge Regression},

booktitle={Proceedings of the 1st International Conference on Artificial Intelligence for Internet of Things: Accelerating Innovation in Industry and Consumer Electronics - Volume 1: AI4IoT},

year={2023},

pages={64-70},

publisher={SciTePress},

organization={INSTICC},

doi={10.5220/0012559200003739},

isbn={978-989-758-661-3},

}

#### in EndNote Style

TY - CONF

JO - Proceedings of the 1st International Conference on Artificial Intelligence for Internet of Things: Accelerating Innovation in Industry and Consumer Electronics - Volume 1: AI4IoT

TI - Forecasting Cost-Push Inflation with LASSO over Ridge Regression

SN - 978-989-758-661-3

AU - Nair S.

AU - Deepa N.

PY - 2023

SP - 64

EP - 70

DO - 10.5220/0012559200003739

PB - SciTePress