Do producer prices cause consumer prices?

Mohd Fahmi Ghazali and Ooi Ai Yee and Mohd Zulkifli Muhammad (2008) Do producer prices cause consumer prices? The Canadian Center of Science and Education, 3 (11). pp. 78-82. ISSN 1833-3850

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Abstract

The main purpose of this paper is to examine the relationship between consumer price index (CPI) and producer price index (PPI) in Malaysia. This research considers monthly data of consumer price index and producer price index from January 1986 to April 2007. The Johansen cointegration method suggests that there is long-run equilibrium relationship between these two variables. Both Engle Granger and Toda-Yamamoto causality tests find that there is uni-directional causality running from PPI to CPI.

Item Type:	Article
Keyword:	Causality, Consumer price, Producer price, Malaysia
Subjects:	B Philosophy. Psychology. Religion > B Philosophy (General) > B1-5802 Philosophy (General) > B108-5802 By period Including individual philosophers and schools of philosophy > B108-708 Ancient H Social Sciences > HG Finance > HG1-9999 Finance > HG3810-4000 Foreign exchange. International finance. International monetary system
Department:	FACULTY > Labuan Faculty of International Finance
Depositing User:	JUNAINE JASNI -
Date Deposited:	23 Sep 2025 10:00
Last Modified:	23 Sep 2025 10:00
URI:	https://eprints.ums.edu.my/id/eprint/45142

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