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Dynamic linkages between price indices and inflation in Malaysia

Murdipi, Rafiqa and Law, Siong Hook (2016) Dynamic linkages between price indices and inflation in Malaysia. Jurnal Ekonomi Malaysia, 50 (1). pp. 41-52. ISSN 0126-1962 E-ISSN 2716-6058

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This study examines the dynamic linkages among consumer price, producer price, industrial production and import price indices in Malaysia by using monthly data from 2005 to 2013. The empirical results based on Johansen multivariate cointegration test reveal that there is a long-run relationship among these indices. The long-run estimations indicate that industrial production and import prices are statistically significant determinants of consumer price index, which indicates that Malaysian inflation is due to demand-pull and international transmission, or imported inflation in the long-run. However, the higher producer price is associated with higher inflation or costpush inflation in the short-run.

Item Type: Article (Journal)
Uncontrolled Keywords: Inflation; demand-pull inflation; cost-push inflation; imported inflation; international transmission of inflation
Subjects: H Social Sciences > HB Economic Theory > HB3711 Business cycles. Economic fluctuations
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Kulliyyah of Economics and Management Sciences
Kulliyyah of Economics and Management Sciences > Department of Finance
Depositing User: Dr. - Murdipi
Date Deposited: 31 Dec 2020 09:29
Last Modified: 31 Dec 2020 09:29
URI: http://irep.iium.edu.my/id/eprint/87399

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