The determinants of consumer price index in Malaysia / Nurul Izzati Ismail

This paper is aim to identify the factor that influences consumer price index in Malaysia. The issue of this study is to understand the reason of rising prices as inflation is unavoidable phenomenon. Thus, the factors that may influences the consumer price index will be observe closely. The dependent variable in this study is consumer price index (CPI) inflation that will be measure by consumer price index. Five selected independent variables in this study are gross domestic product, money supply, interest rate, import of goods and services, and government expenditure. This study used quantitative secondary data which is time series model represented by the ordinary least squares (OLS) as the technique to look factor that influences the consumer price index in Malaysia over the period 1980 until 2015. The sources of data will be find through DataStream and World Bank data. The CPI determinants, which only money supply and import of goods and services have positive relationship with consumer price index, while gross domestic product, interest rate, and government expenditure have negative relationship with consumer price index. The limitations of study are based on consumer price index (CPI) in Malaysia of data set over 36 years.