Real GDP and exchange rates, not crude oil, drive Malaysia's food prices!
The study looked at how crude oil prices, real GDP, and exchange rates affect food prices in Malaysia from 2000 to 2016. They found that while crude oil prices have a consistent impact on food prices, real GDP and exchange rates have a more complex relationship. In the long run, changes in real GDP and exchange rates affect food prices differently, with exchange rates playing a bigger role. In the short term, real GDP growth and exchange rate changes have a significant impact on food prices, while crude oil prices do not. This suggests that policymakers should focus on exchange rates rather than crude oil prices when considering food price fluctuations.