Inflation: A Malaysia story

Abstract

Inflation in economics is defined as “a persistent and sustained increase in the aggregate or average price level of goods and services in an economy”. Inflation is mysterious where it can effect economy in various ways, either positive or negative. Inflation is measured using Consumer Price Index (CPI). Thus, this paper presents the story of inflation from Malaysia point of view. This paper also outlines the basic concept of inflation as its understanding is vital for policy decision-making.