This paper focuses on developing models to study influential factors on the inflation rate for a panel of available countries in the World Bank data base during 2008-2012‎. ‎For this purpose‎, Random effect log-linear and Ordinal logistic models are used for the analysis of continuous and categorical inflation rate variables‎. ‎As the original inflation rate response to variables shows an apparent right skewness‎, ‎the log transformation in the linear mixed effect model seems necessery‎. ‎In the ordinal logistic mixed effect model‎, ‎as a new approach‎, ‎the inflation rate variable is categorized based on two threshols to increase model predictibality and precision‎. ‎These two models consider the potential serial correlation between annual infltion rates and categories through introducing some latent random effect parameters‎. ‎The results of both models show that money growth‎, ‎GDP‎, ‎oil price and income levels of the available countries are significant predictors with increasing effect on the next year inflation rate category‎. ‎Using the categorical inflation response variable yields some superior results where government expenditure‎, exchange rate and capital formation are also detected as significant determinants of ordinal inflation variable‎. ‎Also‎, ‎the random effect variance is highly significant in both models which shows the necessery need for consideration of the potential association of inflation variables across time‎. ‎

JEL Classifications: E17, E27, E31, E37, E47 ‎