Inflation and Its Impacts in Malaysia
TABLE OF CONTENT
Title Page 1. Introduction 2 2. Discussion of the issues 2.1 Inflation 2.1.1 Definition of inflation 3 2.1.2 How inflation is measured 3 2.1.3 The causes of inflation 4 2.2 In the context of Malaysia’s economy 2.2.1 Inflation rate in Malaysia 4-5 2.2.2 Consumer Price Index (CPI) in Malaysia 5-6 2.2.3 Average monthly household expenditure in Malaysia 6-7 2.2.4 Salary growth in Malaysia 8-9 2.3 The impact of inflation on consumers’ living patterns 9 2.3.1 Housing 9-10 2.3.2 Electricity 10 2.3.3 Fuel 10 2.3.4 Transportation 11 2.3.5 Food 11 2.3.6 Clothing 12
3. Conclusion and recommendations 12-13
4. References 14-15
1. Introduction
In the past few decades, the Malaysia’s government has been putting in lots of efforts to transform the country from a raw materials producer into an emerging multi-sector economy (Trading Economics Malaysia GDP). Whilst we are enjoying all the conveniences and benefits under the fast-growing economy, we at the same time however, suffered the pain of the rapidly rising cost-of-living which caused by inflation. Inflation is no stranger to us; we often hear people talk about it and often read it on newspaper. The discussions ranging from how inflation has made people’s lives become more difficult to how government is striving to ensure the inflation rate does not increase drastically. However, despite the government promises that inflation is under control, goods and services in Malaysia are still getting more and more expensive. Malaysians are becoming increasingly anxious over the rising cost of goods and services in relation to our salaries, as the salary we earn today can no longer provide us the same standard of living that we used to have previously. This research paper is to discuss the inflation phenomenon in Malaysia, including the causes of
Title Page 1. Introduction 2 2. Discussion of the issues 2.1 Inflation 2.1.1 Definition of inflation 3 2.1.2 How inflation is measured 3 2.1.3 The causes of inflation 4 2.2 In the context of Malaysia’s economy 2.2.1 Inflation rate in Malaysia 4-5 2.2.2 Consumer Price Index (CPI) in Malaysia 5-6 2.2.3 Average monthly household expenditure in Malaysia 6-7 2.2.4 Salary growth in Malaysia 8-9 2.3 The impact of inflation on consumers’ living patterns 9 2.3.1 Housing 9-10 2.3.2 Electricity 10 2.3.3 Fuel 10 2.3.4 Transportation 11 2.3.5 Food 11 2.3.6 Clothing 12
3. Conclusion and recommendations 12-13
4. References 14-15
1. Introduction
In the past few decades, the Malaysia’s government has been putting in lots of efforts to transform the country from a raw materials producer into an emerging multi-sector economy (Trading Economics Malaysia GDP). Whilst we are enjoying all the conveniences and benefits under the fast-growing economy, we at the same time however, suffered the pain of the rapidly rising cost-of-living which caused by inflation. Inflation is no stranger to us; we often hear people talk about it and often read it on newspaper. The discussions ranging from how inflation has made people’s lives become more difficult to how government is striving to ensure the inflation rate does not increase drastically. However, despite the government promises that inflation is under control, goods and services in Malaysia are still getting more and more expensive. Malaysians are becoming increasingly anxious over the rising cost of goods and services in relation to our salaries, as the salary we earn today can no longer provide us the same standard of living that we used to have previously. This research paper is to discuss the inflation phenomenon in Malaysia, including the causes of