This study examines whether food price inflation in Malaysia is transitory or permanent. Parametric and non-parametric tests are used to examine the memory properties of four price inflation series over the period January 2000 to July 2016. We find that the four inflation series, namely food price inflation, non-food price inflation, general inflation, and global food price inflation all exhibit long memory. The study also shows that food price inflation in Malaysia co-moves with global food price inflation. The findings indicate that food price inflation is not transitory, yet it does in fact show a long memory. The results of this study have important implications for food, trade, and monetary policymakers.
|Publication status||Published - 13 Jul 2018|
|Event||Australian Conference of Economists (ACE 2018) - Canberra, Australia|
Duration: 10 Jul 2018 → 13 Jul 2018
|Conference||Australian Conference of Economists (ACE 2018)|
|Period||10/07/18 → 13/07/18|