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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


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.

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Additional Metadata

Item Type: Article
Divisions: Faculty of Economics and Management
Publisher: Penerbit Universiti Kebangsaan Malaysia
Keywords: Inflation; Demand-pull inflation; Cost-push inflation; Imported inflation; International transmission of inflation
Depositing User: Nabilah Mustapa
Date Deposited: 07 Sep 2017 04:30
Last Modified: 07 Sep 2017 04:30
URI: http://psasir.upm.edu.my/id/eprint/57094
Statistic Details: View Download Statistic

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