Impact of Oil Prices, Energy Consumption and Economic Growth on the Inflation Rate in Malaysia

Abstract

Oil prices, energy consumption, and economic growth have made a significant effect on inflation rates in Malaysia. This study attempts to examine this effect through secondary data collected on specific macroeconomic indicators such as inflation and country's oil prices, energy consumption, and gross domestic product. For this purpose, year to year information from 1986 to 2019 series was utilized. This research study used the E- views regression model, correlation model, and descriptive analysis to break down the information about oil prices, energy consumption, economic growth, and inflation rate.  It investigated how oil prices, energy consumption, and economic growth have a positive association with the inflation rate in Malaysia. It is premised in this study that the rate of oil and renewable energy consumption enhances the economic growth and also improves the inflation rate in the country. This finding helps the Malaysian government in entering into essential leadership deal with oil prices, and energy consumption to manage inflation rates.