The Malaysian Consumer Price Index Economics Essay

The Malaysian Consumer Price Index Economics Essay The consumer price index (CPI) is measurement of the percentage change through time in the cost of purchasing a constant group of goods and also services and it also representing an average pattern or index from the purchases made by the citizen in one specific period of time. The Index is started since 1967 = 100 (which is the based year) was the index for the Peninsular Malaysia while the Index for the year 1980 is referring to Malaysia which means that the whole Malaysia. All the series of data of the CPI are based on internationally accepted statistical procedure. Each of this series is follow the recommended classification contained in the United Nations System of National Account (SNA), 1968 that must be followed by every country in measuring CPI. The most commonly methods or formula that been use to analyze and collect the data of CPI is Laspeyres, which is based on the item that are locally consumed reflecting the spending habits of average citizen. The items then been includ e in the Consumer Price Index is usually a necessity product or the product or services that been continuously used by the consumer. In prior 2006 the goods and services were classified according to Classification of Household Goods and Services (CHGS) with the nine main group which is Food, Beverage and Tobacco, Clothing and Footwear, Gross Rent Fuel Power, Furniture and Furnishing Household Equipment and Operation, Transportation and Communication, Recreation Entertainment Education and Cultural Services, and lastly is Miscellaneous goods and services. These baskets of consumer product have been changes from CHGS to COICOP (Classification of Individual Consumption According to purpose) in year 2006 until now and the additional group of product has been change to twelve which is Alcohol and Non-Alcohol Food and Drink and Routine Household Maintenance, others are remained constant. 1.1 BACKGROUND OF STUDY This study conducted to examine what is the causal relationship between economic variable and Malaysian CPI. The main purpose of this research is to reveal the relationship of economic variables impact towards the CPI for the last five years. The consumer price Index or CPI is the general and major indicator that explained the changes in retail price paid by the household for goods and services. CPI measures the changes in the general level of prices of a fixed basket of goods and services which represents the items which are normally consumed by an average household in Malaysia with reference to the base period. The CPI is designed to provide a broad measure of changes in retail prices experienced by Malaysian households as a group and should not be expected to exactly reflect the experience of any individual household. Therefore it will keep changes depending on the many factors that will influence it. The economic variable that been research in this study is inflation rate, Exchan ge rate, Palm oil, Money Supply and also Consumer Price Index. This research wants to reveal what is the variable that will have the relationship with Consumer price Index. Although the existing research provides some support links between the economic variable and CPI there is need for additional research. 1.2 PROBLEM STATEMENT Consumer Price index is one of the major indicator in one country because of ità ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s explained the average general price of consumer product in that country. This is important because of its related with the efficiency of the country in managing the price of the consumer product that will remain changes from time to time. Therefore it is very important to understand what exactly the factors that lead to the change on the CPI and the methods to control the changes. It is not good if a country have a higher consumer price index compare to the average household income, it means that the household have a constraint in spending their money towards necessity product. Thus, in this research the main point is to know which economic variables that will give an impact towards the consumer product and the efficiency of the variable influence the CPI. 1.3 RESEARCH QUESTION In this study, there are several research questions that has been developed regarding the problem statement occurred. The research question of this research is: 1.3.1 To find out the current condition of the Consumer Price Index 1.3.2 To find out the reason the fluctuation of Consumer Price Index 1.3.3 To identified the effect of the economic variable towards the consumer price Index 1.3.4 To find out the consequences of the impact towards the country and household. 1.3.5 To list the ways to overcome a large fluctuation of the Consumer Price Index. 1.4 OBJECTIVE OF STUDY Several studies on CPI found that it is a common view that every country has a fluctuation on the Consumer Price Index. However, it cannot be denied that some of the economic variable will impact the fluctuation of CPI and it are been prove by the past research that been found in the abroad study. Therefore the main purpose of this study is to know the impact of the economic variable that been used as a variables towards the Consumer Price Index. 1.5 SIGNIFICANT OF THE STUDY There are several others factors that lead to the fluctuation or changes on the consumer Price Index such as political decision making, political stability, and a government decision development plan. In this study we just only want to research on the economic variable that would give a huge impact towards the CPI, compare to the others economic variables and the significant of the impact. 1.6 SCOPE OF STUDY The scope of this study would cover the consumer price product in Malaysia and the significant changes of the consumer product price. Next, this study also cover some of the economic variable that been choose as independent variables. The time horizon used in this study is single cross sectional where the economic variables may come from consumer price index (CPI), interest rate, foreign exchange, Money supply and palm oil. 1.7 LIMITATION OF STUDY Time constraint has been encountered ever since the study has been started at the early semester 2011 until April 2011 therefore its difficulty in order to distribute questionnaire and have a respondent and get a feedback on CPI. The study has been done by using the data that been collected and also the recent past supporting journal that have been done. This study is based on the data collected from the secondary sources and also the primary resources. The data been collected from the beginning January of the year 2005 until December end 2010. The time period of this research is for the 5 years. 1.8 DEFINITION OF TERMS 1.8.1 CPI CPI volumes represent the Consumer Price Index which is the average general price of consumer product that been group in Malaysia. 1.8.2 Inflation rate The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling 1.8.3 Exchange Rate The price of one countrys currency expressed in another countrys currency. In other words, the rate at which one currency can be exchanged for another 1.8.4 Money Supply The entire quantity of bills, coins, loans, credit and other liquid instruments in a countrys economy. 1.8.5 Palm oil Palm oil is the current price of the Palm Oil in countries. 1.9 SUMMARY Consumer price index is one of the major indicator that been see in evaluate the condition of one country. There are a few other indicator that can been use to evaluate one country such as the criminal cases, population, economic and others variable but the most preferable indicators is CPI because its related with the consumer which is the customer and price which is resources and leads to the revenue. So it is important to control CPI simultaneously with the household income because of its have a negative correlations. This study will examine the impact of economic variable towards the CPI. Few economic variables are taken to test whether there are any significant correlation between the dependent and independent variables. CHAPTER 3 METHODOLOGY AND DATA 3.0 INTRODUCTION The objectives of this study are to find the correlation between the economic variables and impact towards the consumer price index. Specifically, this study is determined which variable is have a huge impact towards the movement of the CPI. Therefore by doing this research we can exactly get the true information on the movement of the consumer price index rather than make assumption based on the own ideology. To achieve the objective of study, several test have been use to get the result of the variable. Example of the test that wants to be done is T-Test, F à ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ Test and Multiple Regressions. The test has been choosing because of it will give a clear and transparent view on the result and its uncomplicated compared to others test that more complicated. This test also have been supported by the hypothesis based on the understanding on the issued that been research or discuss. The hypothesis is the early assumption on the result that will happens at the end of the stud y. 3.1 DATA COLLECTION Data concerning on the historical of CPI and the economic variables were gathered to see whether there are any correlation between the dependent and all those independent variables. The secondary data will be collected from the past recent journal regarding this study. The study or research have been develop by the foreign people or country, but the variable is not the same but still similar. The journal that been used is only for support the consumer price index situation. 3.2 SAMPLING FRAME To secure an acceptable result, this study decided to use 5 economic variables from others economic variables and the data is collected for 5 years and in monthly basis. 3.3 SOURCES OF DATA The data on the dependent variables CPI was collected from the Malaysian Department of Statistic and the data are updated until December 2010 which is on the current updated. The data is in Malaysian Ringgit (RM). Next for the independent variables the data are been collected from the DataStream which is for Inflation Rate in percentage (%), Exchange rate in Malaysian ringgit (RM), Money Supply in Malaysian Ringgit (RM), and lastly for the palm oil is still in the Malaysian Ringgit (RM). The data have been collected from January 2005 until December 2010 and by using monthly data basis. 3.4 VARIABLES AND MEASUREMENT The variables used in this study can be categorized into two main types which are the dependent and the independent variables. 3.4.1 Dependent Variables The dependent variable for this study is the Consumer Price Index which will be measured in terms of average general level of price that been group under COICOP. 3.4.2 Independent Variables For this study, there are four independent variables that will be measured. There is the inflation rate, exchange rate, Money Supply and Palm Oil 3.5 RESEARCH DESIGN This research is designed to explore the relationship between dependent and independent variables. In this study, it engages in hypotheses testing that will explain the certain significant correlations between economic variables and the decision of going public. 3.5.1 Purpose of the Study The purpose of this study is to determine the causal relationships between economic variable and CPI or want to know the impact of the economic variable towards the CPI. 3.5.2 Types of Investigation This study involved the correlation types of investigation which is want s to investigation the relationship between the variables whether have a strong relationship, semi strong relationship, weak relationship and lastly is no relationship with the variables. 3.5.3 Unit of Analysis In this study, Consumer Price Index, Exchange Rate, Inflation rate, Money Supply, Palm Oil Price. 3.5.4 Time Horizon This study will use monthly basis data from year January 2005 until December 2010 THEORETICAL FRAMEWORK There is a classical theory that explained the high correlation between the economic variable factors influence the fluctuation of the Consumer Price Index Dependent variable: Consumer Price index Independent variables: Inflation rate, exchange rate, Money Supply and Palm Oil Price. Figure 1: Schematic Diagram (Relationship Diagram) Inflation Rate Independent Dependent Consumer Price Index Exchange Rate Money Supply Palm oil Price According to the schematic diagram above, it can be elaborated that the Consumer Price Index are determine by the inflation rate, Exchange Rate, Money Supply and Palm Oil Price. 3.6 DATA ANALYSIS AND TREATMENT The statistical tools use in the study is Multiple Linear Regression Model. This model of analysis is done to examine the simultaneous effects of several independent variables on a dependent variable that is interval scaled. In other used since is can explain the correlation between the dependent and independent variable. By using this correlation we can identify which variable will affect most on the dependent variable. This equation is one of the method that easier to use and understand. Multiple Linear Regression Model: (Equation 1) Where; Y = Dependent variable which represent Consumer Price Index = The constant number of equation = Independent variable which represent Inflation Rate = Independent variable which represent Exchange Rate = Independent variable which represent Money Supply = Independent variable which represent Palm Oil Price = Error 3.7 HYPOTHESIS STATEMENT Consumer Price Index movement can be influenced by many factors. The changes in these CPI may significantly change the spending of consumer and household. The consumer price index may also be effect by others external factors that canà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢t be measures by using the data as an example political, government plan , and criminal cases that are happens and increase from time to time. Thus, there is important to make the hypothesis before makes a research and construct a finding. This hypothesis is bringing a general assumption the impact of the economic variables towards the consumer price index. Hypothesis 1 H0: inflation rate is a main contributor of the increasing in oil price. Hypothesis 2 H0: exchange rate is not a main contributor to the changes in general level of price. Hypothesis 3 H0: Money supply also a contributor to the movement of the Consumer Price Index level. Hypothesis 4 H0: Palm Oil is not a main contributor to the changes in average level of consumer price Index. 3.8 SUMMARY In the nutshell, this chapter will provide the research design that will be used in this study. The study aims to determine the relationship between economic variable factors and the consumer price index. This research will be done in accordance to the objective where to know whether there is any significant relationship between the economic variable factors with the average general price of CPI. This information will perhaps can be used by the household, private and public sector, for them to make a plan in the current general consumer price Index. Since study focuses on the data from 2005 until 2010, if would give a better picture on the movement of the historical CPI until current price influence by positive relation economic factors.

Explain how Mary Shelley makes us feel contrasting emotions towards the creature in “Frankenstein”

In this essay I will be talking about the historical background of writer Mary Shelley and about her novel â€Å"Frankenstein†. Mary Shelley was born on the 30th of August 1797. Mary Shelley's father was called William Godwin who was a Godwin and a philosopher. After Mary Shelley was born, Mary Shelley's mother Mary Wollstonecraft who was a feminist writer at the time died 4 weeks after Mary Shelley's birth. When Mary Shelley grew up she ran off with a poet called â€Å"Percy Bysshe Shelley† who was already married. Mary Shelley was very well educated. Percy Bysshe Shelley and Mary Shelley had a baby girl in February in 1815 who unfortunately died almost a month later. The Shelley's went on holiday in about 1816. Mary Shelley had a dream that was used as the basis of â€Å"Frankenstein†. It was very wet so a ghost writing competition was organised to pass time, it was then that Mary Shelley had written her novel â€Å"Frankenstein† Mary Shelley's ideas were inspired by developments in science and medicine which made people wonder if life could be created. People were religious and thought God was in charge of life and death, so any person tempering with his powers was likely to be horribly punished. Mary Shelley had a further series of tragedies in life. These tragedies include the death of Mary Shelley's in 1816 due to committing suicide; including the death of Mary Shelley's own two children; one who died in 1818 and one in 1819. When Mary Shelley was 22 years of age which was in the year 1822 the death of her husband had also occurred. In 1818 Mary Shelley's book was published namelessly, and later on in about 1830 it was published with her name on it. The reason for this is because when it was published previously in the years secretly, it was always believed that women should not work and are not as useful as men are and should remain as housewives looking after their children. Another reason for this was that it was believed that women are not capable of writing novels. Later on when years had passed Mary Shelley had died in 1851. In the novel Frankenstein the creature is first mentioned in the letter IV to Robert Walton. The letter had written in it: â€Å"a being which had the shape of a man, but apparently of gigantic stature†. The novel is set in the mist and ice, this is a gothic novel and causes a sense of mystery about the creature, and creates an atmosphere. This is so we create an image inside our minds of the creature and the mysterious atmosphere which leads an expectation. Mary Shelley uses words like â€Å"dreary, dismallye. eg â€Å"the rain pattered dismally against the panes†, dull and dim†. Mary Shelley used a lot of pathetic fallacy in this novel. In chapter 5 Shelley tells us that there is little light at a certain pint in the novel. This is because she wrote â€Å"my candle was nearly burnt out†¦ Here Shelley builds up the atmosphere by writing â€Å"so dark that anything could happen†. The size of Frankenstein's creature reminds us of Walton's letter â€Å"to make the being of gigantic stature, that is to say, about eight feet in height and proportionally large†. The creature is linked with corpses, graveyards, maggots and dead bodies. This description makes the reader feel disgusted and sick and would not want the creature anywhere near them and would most likely feel revolted and sickened which would make them feel furious and think the creature is just morally wrong. Mary Shelley and her audience knew about body snatchers. In chapter 5 Mary Shelley sets a gothic scene by creating an atmosphere (at the beginning of chapter 5). Mary Shelley makes it all spooky and then starts to describe the character and then goes back to the weather. Shelley uses the word â€Å"detain† to show that Victor is scared that the creature will stop him from leaving. This makes us feel that it is threatening and is dangerous when she calls it a â€Å"demonical corpse†. She implies that it's from the devil and makes the reader scared of the creature. Victor's reaction is violent and gothic. To add to the tension and fear the beast is by his bedside so he runs outside to escape it. Shelley uses words like â€Å"miserable monster† and â€Å"demoniacal corpse†. I think that Shelley uses such word because I think that it is true the creature is very much like a miserable monster as the creature is very lonely and does not know who he is and has no one who likes him and all the creature wants is sympathy. I think that this is why Shelley uses words like â€Å"miserable† and also uses words like monster because the creature is just like a beast and acts like a monster does and is like a monster is usually described. Shelly also uses word like â€Å"demoniacal† possibly because the creature is shown to be evil and up for revenge for why he was created. â€Å"demoniacal† means that someone is evil or is possessed by an evil spirit. The reason why Mary Shelley could have used corpse after â€Å"demoniacal† is because the creature is made of different corpses and dead bodies. Victor is ill for weeks, and then when things look happy, Victor receives a letter from his partner. The letter contains: â€Å"About 5 in the morning I discovered my lonely boy whom the night before I had seen blooming and active in health, stretched on the grass livid and motionless the print of the murderous finger was on the neck†-letter from Geneva. Mary Shelley uses pathetic fallacy again in the novel when victor goes to the place where William was murdered†¦ e. g. â€Å"the darkness and storm increased every minute and thunder burst with a terrific crash over my head†; he sees the creature â€Å"a flash of lightening†¦ † . Victor reacted with shock thinking he had made the killer kill William. E. g. He was the murderer! I could not doubt it†. In the chapter of sympathy (chapter 11), we hear the creatures side of the story, â€Å"am I not alone, miserably alone? † this makes us feel extremely sorry for the creature and makes us think that it was not the creatures fault and was not the creatures decision to come into the world and have life so we cannot really blame the creature fully for what is going on. The creature was taken from villages to villages just because people were horrified of him as children shrieked and women had also fainted over seeing him. â€Å"Some attacked me until, grievously bruised by shoes†¦ I escaped†¦ â€Å". The creature was homeless and had nowhere to live; he had no roof under his head and desperately needed a roof over his head. The creature was so desperate for a roof above his head that yet a hut was joy to him no less than paradise. â€Å"Exquisite and divine a retreat†¦ † The beast really wanted somewhere to belong. The creature takes shelter in an animal shed at a farm and is very kind to them. When the creature sees them he feels very happy to see what a family is like and also feels upset and unwanted knowing he is not wanted by anyone and is hated by the people. They were a mixture of pain and pleasure, such as I had never before experienced†¦ â€Å". In chapter 15 there is a blind man and the creature helps him and is extremely kind to the blind man, the creature takes advantage of this that he cannot see the ugliness of him and likes the love he gets from the old man and feels like he is cared by someone for the first time. Just like i mentioned previously I really feel sorry for his creation, this is because the creature is not at fault for his creation. The creature must feel very miserably like he says because he also has a heart like humans and feels unwanted, rejected lonely. I do not blame the creature for wanting a female just like him, so he could have someone to love and someone to love and care for him even after seeing how he appears. When the creature is rejected from the old man's family the creature sets off to find his creator who he believes to be his father. â€Å"My father, my creator†¦ â€Å". At the time the creature was rejected by the family the creature feels sour inside himself we know this because â€Å"the spirit of revenge enkindled in my heart†. There is a point in the novel when Frankenstein's creature saves a girl from drowning. When the creature tries to breathe life into the girl, the creature is shot by a man. â€Å"I vowed eternal hatred and vengeance to all mankind†. The creature meets William, when William see's the creature William is scared of him and tells him that his name is Frankenstein. At this point William is killed by the creature. â€Å"I gazed on my victim and my heart swelled with exultation and tallish triumph†¦ † When Shelley used the word(s) â€Å"gazed on my victim† she makes it sound like William has done a huge crime and he is at fault for what Frankenstein has done by creating the creature. The creature asks Frankenstein for a female creature, like himself, someone to love him and someone that he can love and spent the the rest of his life with. â€Å"If I cannot inspire love I will cause fear, and chiefly towards you my arch enemy†¦ â€Å". Here the creature say's to Frankenstein that if he cannot find his love then he will become his enemy and take away his love. â€Å"I demand a creature of another sex but is hideous as myself†¦ we shall be monsters, cut off from the world†¦ let me see that excite thing†¦ At this point I believe that the creature is asking for something that he thinks is reasonable. I think that the creature has a right to ask this because the creature did not choose to come on to this world and it is not fair for him to be lonely with no one to be with. The creature makes a deal with Frankenstein saying that he will leave him and everyone alone and go far away from them only if Frankenstein creates a female creature. The probl em with this is that if a female creature is to be created it could also become like Frankenstein and they both may want to take revenge from Frankenstein. Another problem would be that the creatures would have children and this would lead to something very serious. After the creature say's all these things Victor feels sickened with what the creature is saying. â€Å"The filthy mass that moved and talked†¦ â€Å". Victor agrees to create a female creature for the male creature. When victor is in the process of creating the female creature he changes his mind, when he changes his mind he rips the body into pieces. When Victor does this act the creature see's everything and is furious and vows to take revenge. â€Å"I shall be with you on your wedding night†. The creature mean that if he cannot get someone to love and spend the rest of his life with neither will Victor. When the creature gets to Elizabeth (Victors wife) and kills her, Shelley uses a storm again to create a scary atmosphere and a horrific atmosphere. â€Å"She was there lifeless and inanimate, throw a cross the bed†. Victor dies and Walton finds the monster by his body. The creature say's he regrets the killings but was provoked to do such doings. â€Å"I pitied Frankenstein†¦ the important envy and bitter indignation as filled me with an insatiable thirst for vengeance†. At this point i feel sorry for the creature only because he has no one left, otherwise I do not really feel sorry for the creature here because due to him Elizabeth had died and she had nothing to do with anything. Elizabeth was not at fault and was very unfair for the creature to kill her in such a brutal and insane way. So I think that the creature would just have to live with and put up with what he has done, and could have a tried a different way of trying to persuade Frankenstein of creating a female creature for him rather than threatening to kill his wife on his wedding night, which I think sounded very sick and extremely unfair.

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Systematic Culture Change and the Mental Health Services Act

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This system atic review yields four main conclusions in regards to addressing some of the issues that healthcare providers and policy makers in LDCs will have to act upon in order to avoid a drastic future for their ageing populations. First and foremost the information gap on geriatrics needs to be bridged. Researchers in less developedRead MoreAustrali A Strong Culture Of Racism1660 Words   |  7 Pagesracial abuse on a regular basis even though this is their homeland? Australia has developed a strong culture of racism, caused by its long history of discrimination. Despite this a large majority of the population are in denial of its existence. The grim reality is that this bigotry is affecting all aspects of society including health, the economy, housing, unemployment rate and social unity. We must act, in order to decrease the levels of racially motivated abuse seen in today’s society. This problemRead MoreThe Objectives For Kaiser Permanente1032 Words   |  5 PagesDifferent States (Growth) 2. Create Pre-diabetic program along with exemplified mental health program 3. Implement a Medicaid Cost Reduction Plan 4. Primary Physician Recruitment Program 5. Reinvest current net income into interest accounts for future variable health care costs for years to come 6. Utilization of Pull Strategies by employing tactics to draw interest for the target audience, creating an innovative culture within the organization Objectives The top objectives for Kaiser Permanente isRead MoreThe Nurses Working Hours : General Description Of Indonesian Regulation1512 Words   |  7 PagesThe Nurses Working Hours: General Description of Indonesian Regulation Introduction Health care is one of the area of public services which need continuous services 24 hours a day, 7 days a week. Therefore, traditionally, shift hours work schedule is the only options over the traditional Monday through Friday office hours to provide continuous services to the public. As generally known, there are options of working hours in applying the shift work hours. There are some institutions use 12-hoursRead MoreThe Health Of The United States1409 Words   |  6 Pagescontinues to spend the most on health while it increases annually around 7 percent expected to total over 4 trillion in 2015. Kaiser Permanente Growth- Kaiser continues to increase enrollment annually leading to increasing the infrastructure growth. There is a great opportunity from new hospital projects to expand demographics Threats Healthcare Reform- Healthcare Reform is still in the implementation phase and is expected to increase the operating costs for many health insurance organizations. Costs