Determinants of inflation rate in Malaysia : The case of 1981 - 2016 / Nur Najah Solihah Khairul Anuar

The aim of this study is the determinants of the inflation rate in Malaysia. This study used
internal determinants such as unemployment, interest rate, government spending, Foreign
Direct Investment (FDI) and economic growth. The data was collected from World Bank Data
with 35 observations which is from the year 1981 to 2016. Time Series analysis is conducted to
examine the determinants. The estimation result shows that FDI is significantly influences the
inflation rate while unemployment, interest rate, government speding and economic growth is
insignificant effect the inflation rate. For future studies, it is recommended to used different
system to run and regressed the data so that it will give different technique and result of the
data.