Estimating Future Prices Linked to Inflation Rates for Accurate Financial Projections
The article discusses how to estimate future price increases by linking them to inflation rates. By examining historical prices and inflation rates, we can understand how prices have changed in the past and predict future price trends. This method helps in setting prices in line with inflation, avoiding setting prices that are too high or too low. It also helps in estimating the cost of future debt by considering inflation rates. The appendix provides detailed assumptions for robust analysis.