Malaysia current inflation situation
Introduction Inflation is the controversy issue in world economic development. It causes many others problem to the country all to the world. It because the inflation itself is not only burden to that country, but it also spread the effect to the related country that has relation with them. Not even one single country can avoid the inflation can happen. It always happens but the increasing of inflation can cause others problem worsens. It is the phenomenon that has features of world wide. It affected that not conclude only to certain country. It always happens to most country in the world .Inflation also spread from the host to others, start from the ...view middle of the document...
66%. The inflation rate in Malaysia actually quite good compared to others country that inflation rate is too high and the price for goods and services very expensive. From the research, the increases and decreases of inflation rate occurs due to several factors. In Malaysia, the inflation rate measures a broad rise or fall in prices that consumers pay for a standard basket of goods. Hopefully, from our research we can learn something new that related to economy in our country, Malaysia.
Inflation can be defined as one of the phenomena of general price level rises steadily in the long run and no limitations. For the past 10 years of Malaysia’s inflation, we decided to analyze from the year 2003 until year 2012.
The graph shows the inflation rate in Malaysia from the year 2003 to 2012. It can clearly be seen that there has been a highest rate in year 2008 by 5.4 percent while the lowest rate by 0.6 percent in year 2009 then Malaysia’s inflation rate became normalized to the 3.2 percent in year 2011.
According to The Department of Statistic Malaysia, which is one of the department that responsible to analyze the inflation rate in Malaysia was recorded the average 1.70 percent in October 2012. While, in year 2003 indicates the inflation rate was 1.1 percent. After that, the slow growth shows the difference between year 2003 and 2004 was 0.3 percent. It is mean that in year 2004, the rate of inflation increase to 1.4 percent. Then, it rises considerably over year 2005 by 3.0 percent. It is shows that starting in year 2005, the inflation rate increased rapidly from year 2004 which is the difference was about 1.6 percent. Continually in year 2006, it has been a steady increased, with around 3.6 percent rate of inflation.
Suddenly, the rate falls by 2.0 percent in year 2007 because of the certain factors that can affect the rate of inflation. Next, the rate rose dramatically by 5.4 percent in 2008 due of the increasing in fuel prices on that time. The rate does not longer because in 2009 it decreased by 0.6 percent. Malaysia’s inflation rate starts continuously slightly increased to 1.7 percent in year 2010. The rate slowly goes up in 2011 by 3.2 percent. However, the inflation rate in Malaysia was recorded at 1.30 percent in September of 2012.
To sum up, the overall years from 2003 to 2012, it shows that the trend for inflation rate over the past 10 years is fluctuated trend. From starting year at year 2003 to 2006, the graph shows slowly increased and achieved the highest rate between these four years in year 2006. After that, the graph drops in year 2007 and rise largely in year 2008. In year 2009, the rate of inflation falls dramatically and starts increased back in 2010 and 2011. But the rate still decreased in September 2012. As a conclusion, the lowest rate was 0.6 percent in year 2009 while the highest rate was showed as much 5.4 percent in 2008. In whatever way, the government has decided to decrease the inflation rate and became...