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Fig 1.

The structure of the Hidden Markov Model (HMM) that we build as the benchmark.

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Fig 2.

The decision process of the Gaussian Mixture Model-Hidden Markov Model (GMM-HMM) that introduces Gaussian Mixture Model (GMM) to transform CPI series into a categorical sequence.

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Fig 3.

The whole decision process of Long Short Term Memory Recurrent Neural Network and Hidden Markov Model (LSTM-HMM) with quarterly univariate-input that introduces LSTM to forecast CPI fluctuation states.

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Fig 4.

The structure of the LSTM we build to predict CPI fluctuation states using historical CPI series.

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Fig 5.

The trend of GDP year-on-year growth rate and CPI year-on-year growth rate.

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Table 1.

The linear regression analysis of quarterly GDP growth rate and quarterly year-on-year CPI growth rate.

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Table 2.

The result of Granger causality test of quarterly year-on-year GDP growth rate and quarterly year-on-year CPI growth rate.

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Table 3.

The result of correlation analysis of quarterly CPI with one phase lag and quarterly GDP.

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Fig 6.

The trend of GDP year-on-year growth rate and CPI year-on-year growth rate.

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Table 4.

The threshold estimates from two-stage least squares estimation for the threshold model.

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Table 5.

Least squares estimates of 2-regime threshold model that we build with CPI and GDP data.

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Table 6.

The results of the threshold auto-regression model of the GDP growth rate.

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Table 7.

GDP fluctuation states that differ in three types.

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Table 8.

A general criteria for CPI fluctuation states with two different types.

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Table 9.

Criteria of CPI fluctuation states for HMM with monthly input that vary in four types.

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Fig 7.

The predictions of GDP fluctuation states using HMM(q) within 4-year time window.

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Fig 8.

Confusion matrixes for prediction results from HMM, GMM-HMM and LSTM-HMM with monthly or quarterly input and 4-year time window.

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Table 10.

The number of observations and predictions of GDP fluctuation states within 4-year, 6-year, 8-year and 10-year time window.

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Fig 9.

Confusion matrixes for prediction results from HMM, GMM-HMM and LSTM-HMM with monthly or quarterly input and 6-year time window.

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Fig 10.

Confusion matrixes for prediction results from HMM, GMM-HMM and LSTM-HMM with monthly or quarterly input and 8-year time window.

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Fig 11.

Confusion matrixes for prediction results from HMM, GMM-HMM and LSTM-HMM with monthly or quarterly input and 10-year time window.

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Fig 12.

ROC for HMM, GMM-HMM and LSTM-HMM with monthly or quarterly input within 4-year, 6-year, 8-year and 10-year time windows.

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Table 11.

Accuracy, kappa and AUC for HMM, GMM-HMM and LSTM-HMM with monthly or quarterly input and 4-year time window.

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Table 12.

Accuracy, kappa and AUC for HMM, GMM-HMM and LSTM-HMM with monthly or quarterly input and 6-year time window.

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Table 13.

Accuracy, kappa and AUC for HMM, GMM-HMM and LSTM-HMM with monthly or quarterly input and 8-year time window.

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Table 14.

Accuracy, kappa and AUC for HMM, GMM-HMM and LSTM-HMM with monthly or quarterly input and 10-year time window.

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Table 15.

Comparing HMM, GMM-HMM and LSTM-HMM with monthly or quarterly input and 4-year, 6-year, 8-year or10-year time windows based on Accuracy, Kappa and AUC.

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