Abstract:
This report aims towards the study of relationship between futures prices and CPI inflation. Ten companies monthly closing futures prices have been selected from January 2005 till January 2007. CPI Inflation of the same period is considered month-wise. The statistical technique used f or finding the relationship between futures prices and CPI
inflation are regression analysis and PEARSON function in MS Excel. Ordinary least square (OLS) method is us €;d in this research for the estimation of parameters.This research hopefully will prove beneficial to the people who want to know about the ways and techniques to find the relationship between two variables and informati on i ll give an insight and comprehensive knowledge of the futures market and inflation. III
