Forecasting the Consumer Price Index

In this episode of the Private Equity Funcast, host Ryan Milligan speaks with OpenBrand CEO Greg Munves and Chief Economist Ralph McLaughlin about their innovative approach to tracking inflation through the OpenBrand Consumer Price Index for Durable and Personal Goods (CPI-DPG). The CPI-DPG is updated weekly, providing a third independent data point for measuring inflation. Its accuracy has been validated with a mean absolute percentage error (MAPE) as low as 1.6% in specific categories. Additionally, OpenBrand offers scenario-based inflation forecasts, enabling companies and investors to tailor predictions to their expectations and market views.

Munves and McLaughlin also outline practical use cases:

• Manufacturers and retailers optimizing their pricing and promotional strategies. • Investors seeking early insights on market inflation trends to refine financial models. • Policymakers evaluating the effects of economic policies.

Video Version