Analysis on rate of inflation in Malaysia 2005 - 2012

From the data that we have gathered from world bank, we will data of Consumer Price Index (CPI) which can be used to calculate inflation in the country or region. We will use yearly CPI in Malaysia starting from the year 2005 until the year 2012 with the year 2005 as our base (100) for our analysis.

Year	Consumer Price Index	Inflation rate
2005	100.0	-
2006	103.6	3.60
2007	105.7	2.03
2008	111.5	5.49
2009	112.1	0.54
2010	114.0	1.69
2011	117.7	3.25
2012	119.6	1.61

As shown by the graph and table above, Malaysia has been constantly going through inflation at a fluctuating rate. Every year there will be an increase to the overall price of products in Malaysia with the highest being in the year 2008 with an increase of 5.49% in the CPI from the year 2007. This is due the hike in the price of petrol and oil which happened that year. This is followed by the smallest increase in the CPI the following year which is a rise of 0.54%. This can be read as the government taking action in controlling the rate of inflation in the country from the past year so that the value of currency is stable.

            It also seems that this trend will continue on. We say this because from the newly released Malaysia budget 2014, it seems that the government is trying to curb the rate of inflation, which means that Malaysia will continue to inflate, unless the government succeeds in it’s effort to curb it. The survey that we carried out for this research also shows that the public also thinks that Malaysia will continue to undergo inflation.