Dynamic linkages between price indices and inflation in Malaysia

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 amon...

Full description

Bibliographic Details
Main Authors: Murdipi, Rafiqa, Law, Siong Hook
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2016
Online Access:http://psasir.upm.edu.my/id/eprint/57094/
http://psasir.upm.edu.my/id/eprint/57094/1/Dynamic%20linkages%20between%20price%20indices%20and%20inflation%20in%20Malaysia.pdf
_version_ 1848853267984941056
author Murdipi, Rafiqa
Law, Siong Hook
author_facet Murdipi, Rafiqa
Law, Siong Hook
author_sort Murdipi, Rafiqa
building UPM Institutional Repository
collection Online Access
description 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.
first_indexed 2025-11-15T10:51:16Z
format Article
id upm-57094
institution Universiti Putra Malaysia
institution_category Local University
language English
last_indexed 2025-11-15T10:51:16Z
publishDate 2016
publisher Penerbit Universiti Kebangsaan Malaysia
recordtype eprints
repository_type Digital Repository
spelling upm-570942017-09-07T04:30:35Z http://psasir.upm.edu.my/id/eprint/57094/ Dynamic linkages between price indices and inflation in Malaysia Murdipi, Rafiqa Law, Siong Hook 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. Penerbit Universiti Kebangsaan Malaysia 2016 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/57094/1/Dynamic%20linkages%20between%20price%20indices%20and%20inflation%20in%20Malaysia.pdf 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 http://www.ukm.my/fep/jem/content/2016.html
spellingShingle Murdipi, Rafiqa
Law, Siong Hook
Dynamic linkages between price indices and inflation in Malaysia
title Dynamic linkages between price indices and inflation in Malaysia
title_full Dynamic linkages between price indices and inflation in Malaysia
title_fullStr Dynamic linkages between price indices and inflation in Malaysia
title_full_unstemmed Dynamic linkages between price indices and inflation in Malaysia
title_short Dynamic linkages between price indices and inflation in Malaysia
title_sort dynamic linkages between price indices and inflation in malaysia
url http://psasir.upm.edu.my/id/eprint/57094/
http://psasir.upm.edu.my/id/eprint/57094/
http://psasir.upm.edu.my/id/eprint/57094/1/Dynamic%20linkages%20between%20price%20indices%20and%20inflation%20in%20Malaysia.pdf