Central banks ought to incorporate climate scenarios into their economic models and forecasting methods, said Executive Board member Sabine Mauderer following the publication of new NGFS reports.

Forecasting current month inflation (“nowcasting”) is a highly important exercise for central banks and market participants, especially in turbulent times. In a new study, researchers investigate how millions of granular weekly scanner data from households combined with machine learning (ML) techniques can improve the nowcast of monthly German inflation.