Based on these encouraging empirical results on the power of ARIMA models, we proceed to
apply a SARIMA model to forecast the Turkish inflation rate and provide evidence for an appropriate
representation of the inflation process in Turkey.
The forecasting strategy for the SARIMA model follows the usual format as suggested by the
literature: Data collection and examination, determination of the stationarity of the time-series, model
identification and estimation, diagnostic checking, forecasting and forecast evaluation (Meyler, Kenny
et al. 1998). Figure 1 illustrates the modeling strategy of our SARIMA approach