Determinants of factors that affecting inflation in Malaysia / Nur Hana Qistina Rosli

One of the primary goals of this research study is to investigate the elements that influence inflation in Malaysia. We investigate the relationship between macroeconomic variables such as Foreign Direct Investment (FDI), Gross Domestic Product (GDP), Interest Rate (IR), Money Supply (MS), Unemployment Rate (I-JR) and Inflation (INF). This research study includes annual data for the years 1991 to 2019 and covers the time span from 1991 to 2019. With the help of time series data, it has been discovered that all of the dependent and independent variables are non-stationary at the level but stationary at the first difference. To indicate that the independent variables of macroeconomics items such as Foreign Direct Investment (FDI), Gross Domestic Product (GDP), Interest Rate (IR), Money Supply (MS), and Unemployment Rate (I-JR) have significance with the dependent variable, Inflation, three important tests such as Descriptive Analysis, Regression Analysis, and Correlation Analysis have been conducted (INF). The finding showed that there is a statistically significant relationship between Inflation and the following independent variables: Foreign Direct Investment (FDI), Gross Domestic Product (GDP), Interest Rate (IR) and Money Supply (MS). The findings also showed that there is a statistically significant relationship between Inflation and the following independent variables: Unemployment Rate (UR). The empirical findings of this study indicate that macroeconomic factors play an important role in explaining inflation in Malaysia.