Inflation forecast

This repository contains the code and data for my honor thesis, “Prediction of Peruvian Inflation: Comparing Econometrics and Machine Learning Models with the Inclusion of a Sentiment News Index.” The project aims to analyze and predict inflation rates in Peru by leveraging both traditional econometric models (VAR) and modern machine learning techniques (Ridge, Lasso regression and Macroeconomic Random Forest). Additionally, a sentiment news index is incorporated into the models to assess its impact on inflation prediction accuracy.