Factor that affecting inflation in Malaysia

Inflation refers to the increase in the price of most daily-use goods and services, sech as food, clothing, housing and consumer necessities. Inflation measures the average price change of a goods and services. This research is conducted to figure out with macroeconomic factor that will affect the inflation in Malaysia. The variables that will be used in this research paper are consumer price index, money supply, exchange rate, unemployment rate, gross domestic product and interest rate. The study will include dependent and independent variable from year 1988 to 2019. The method used in this research is multiple linear regression. The annual data are gained from The World Bank and Indexmundi. To observe the relationship between the dependent and independent variable, an economic test will be conducted. E-view software will be used for testing and analysing the data. The research objective is to determine the factor that affecting inflation in Malaysia. The research results will provide us with guidance and may lay an important foundation for policy makers to promote economic growth.