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Jurnal Ekonomi Malaysia

50 (1) 2016 41 – 52

Dynamic Linkages between Price Indices and Inflation in Malaysia
Hubungan Dinamik antara Indeks Harga dan Inflasi di Malaysia Hubungan Dinamik antara Indeks Harga dan Inflasi di Malaysia

Jabatan Kewangan
Kulliyyah Ekonomi dan Pengurusan Sains
Universiti Islam Antarabangsa
53100 Jalan Gombak
Kuala Lumpur
MALAYSIA

rafiqamurdipi@yahoo.com

Jabatan Ekonomi
Fakulti Ekonomi dan Pengurusan
Universiti Putra Malaysia
43400 Serdang, Selangor
MALAYSIA

lawsh@upm.edu.my

Abstract

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 cost- push inflation in the short-run.

Keywords

cost-push inflation; demand-pull inflation; imported inflation; inflation; international transmission of inflation
http://dx.doi.org/10.17576/JEM-2016-5001-04
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Murdipi, , & Law, (2016). Dynamic Linkages between Price Indices and Inflation in Malaysia. Jurnal Ekonomi Malaysia, 50(1), 41–52. http://dx.doi.org/10.17576/JEM-2016-5001-04

@article{murdipi2016dynamic,
  title={Dynamic Linkages between Price Indices and Inflation in Malaysia},
  author={Murdipi, Rafiqa and Law, Siong Hook},
  journal={Jurnal Ekonomi Malaysia},
  volume={50},
  number={1},
  pages={41—52},
 

year={2016},
}

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