Factors affecting consumer price index in Malaysia

Consumer price index is one of the main concerns by the policy maker in nowadays. The reason being is the increasing trend of consumer price index in Malaysia will essentially became a stumbling block for Malaysia to become a “success of economy” by 2020. Unfortunately, the problem of consumer price index is still increasing from year to year and this has raised the interest to study what is some of the possible relevant factors that lead to the rising of consumer price index in Malaysia. The purpose of this study is to investigate the impact of export rate, import rate, population rate and unemployment rate on consumer price index. This study used 32 yearly data for observations which is from 1983 until 2018. The method used for this study is Multiple Linear Regressions. This study used E-Views software in order to run all the data collected to test and analyses the results for discussions. In this study, the results show all these independent variables are insignificant except for population rate. Lastly, the researcher have come out with the conclusion and recommendation as a guide for the future researcher and government in stabilizing the consumer price index in Malaysia.