Interest rates drive inflation in Malaysia, while GDP and unemployment have minimal impact.
The study looked at how different factors like money supply, exchange rate, interest rate, GDP, and unemployment rate affect inflation in Malaysia from 2004 to 2016. They used regression analysis to analyze the data and found that money supply, exchange rate, and GDP have a negative impact on inflation. Interest rate, on the other hand, has a positive impact on inflation. Unemployment rate doesn't seem to have much of an impact on inflation in Malaysia. This information could be helpful for the public, industries, and policymakers.