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Forecasting monthly inflation in Poland

Forecast Poland’s annual inflation rate

Use 12 monthly observations to forecast the next three observations of Poland’s all-items HICP annual rate of change. The source contains 348 monthly values from January 1997 through December 2025.

348Source records
12Encoded input values
57Testing-role records
3Model outputs

1. Business decision

Economic analysts can compare short-horizon forecasts of an explicitly defined price-index rate. The target is the change relative to the same month one year earlier, expressed in percent, not a month-on-month inflation rate.

Defined rate

Forecast year-on-year HICP inflation.

Three horizons

Inspect one-, two- and three-month-ahead outputs.

Chronological evidence

Retain the ordered series and saved subset roles.

Economic researchForecast evaluationTime-series analysis
Historical forecasting benchmark for one country and one price-index definition.

2. Data set

The Eurostat series is prc_hicp_manr, filtered to PL, CP00, RCH_A and monthly frequency. The derived file retains the chronological numeric series; Neural Designer constructs the lagged inputs and three-step targets.

Source: HICP – monthly data (annual rate of change): Poland, all-items. Dataset license: EC-Reuse-2011-833-EU. The downloadable ZIP includes the adapted data and attribution notices.

Dataset measureSaved value
Analysis unitmonthly observation
Records348
Raw variables1
Encoded model inputs12
Model outputs3
Training roles221
Validation / selection roles55
Testing roles57
Unused roles15
FieldRoleTypeCategories
inflationInputTargetNumeric
inflation time series
inflation time series. Native Neural Designer report for this project.
The source series is ordered in time. The saved configuration uses 12 lags and 3 steps ahead. Role counts describe source rows; usable window counts can differ after lagging and subset-boundary exclusion.

3. Model

The model has 12 encoded inputs and 3 outputs. No architecture-selection experiment is recorded in this project. The diagram shows the topology used by the saved model.

LayerInput shapeOutput shapeActivation
Scaling12 × 112 × 1
Recurrent12 × 15Tanh
Dense53Identity
Unscaling33
Clamping33
Forecasting monthly inflation in Poland — initial network architecture
Topology of the saved current model; no architecture selection is recorded.

4. Training strategy

The saved training configuration uses QuasiNewton with NormalizedSquaredError.

Quasi-Newton method results

MeasureValue
Epochs number136
Elapsed time00:00:00
Stopping criterionMaximum validation error increases
Training error0.054
Validation error0.02
Quasi-Newton method error history
Quasi-Newton method error history. Native Neural Designer report for this project.

5. Model selection

No model selection experiment is recorded for this version. The validation subset guides fitting where a training report is present; it is distinct from the held-out test rows.

A persistence forecast provides a transparent baseline for future evaluation. No independently verified persistence score is bundled with this saved run, so no numerical improvement over that baseline is claimed.

6. Testing analysis

The figures and tables below refer to the current project’s saved testing analysis. The subset uses testing role 2; it contains 57 source records.

inflation (t+1) goodness-of-fit parameters

MeasureValue
Determination0.969

inflation (t+2) goodness-of-fit parameters

MeasureValue
Determination0.909

inflation (t+3) goodness-of-fit parameters

MeasureValue
Determination0.837

Average goodness-of-fit parameter

MeasureValue
Average determination0.905
inflation (t+1) goodness-of-fit chart
inflation (t+1) goodness-of-fit chart. Native Neural Designer report for this project.
inflation (t+2) goodness-of-fit chart
inflation (t+2) goodness-of-fit chart. Native Neural Designer report for this project.
inflation (t+1) output plot
inflation (t+1) output plot. Native Neural Designer report for this project.
inflation (t+2) output plot
inflation (t+2) output plot. Native Neural Designer report for this project.

7. Model deployment

Open the downloaded project in Neural Designer, inspect the dataset roles and preprocessing, then review the saved task report. Use the same input schema and category order when calculating outputs. The ZIP contains the exact current .nd, its source data and the applicable dataset notices.

Workflow: source measurements → schema and availability checks → model output → domain review. Keep model versions, validation evidence and incoming-data monitoring together.

8. Evidence and limitations

Economic regimes and policy changes can alter the relationship. Adjacent forecast windows are dependent; future evaluation should roll the origin forward and fit preprocessing only on the training period. A persistence baseline should accompany an operational comparison. The saved testing roles and report figures are the evidence for this run.

References