The determinants of inflation rate in Malaysia / Solehah Mohamad

The main purpose of this research is to examine the determinant factors of inflation in Malaysia. The relationship between macroeconomic factors namely money supply, unemployment rate, exchange rate, gross domestic product and oil price with inflation are studied. This research study covers quarterly data for the time period for the period of first quarter 2007 to fourth quarter 2014. The time series data for the entire dependent and independent variables are to be non-stationary at the level but stationary at first difference. The results show both long-run and short-run relationships between money supply, unemployment rate, exchange rate, gross domestic product and oil price with inflation. The study employs Multiple Linear Regression Method to analyze the relationship between independent and dependent variable. The time series data are collect by quarterly basis from the data stream which is the main source to obtain the quantitative data. The scope of study is based on the macroeconomic factors in Malaysia which the study will be focus on the influence of these factors towards inflation in Malaysia. In this research, the expected result is the independent variables will have significant and insignificant relationship with the inflation in Malaysia.