Conclusion

     

In a nutshell, inflation is an ongoing global phenomenon that affects everyone. With the world’s population that is rapidly growing, resources will continuously become scarce and this will definitely raise inflation rates. What is inflation, how it is calculated, and how the inflation rates affect and are used by the government, companies and even regular people before taking certain actions and when making purchase decisions is explained. In Malaysia, the citizens are lucky to have a stable inflation rate with the government setting certain policies as well as giving subsidies on certain products to suppress the direct effects of inflation. The Malaysian government must implement the monetary policy, fiscal policy, goods and services tax, and subsidies effectively to ensure that Malaysia’s economy will grow healthily, helping Malaysia to achieve a developed nation by 2020. This report can be used to analyze how the consumers are affected by inflation, and the results could be used to determine whether there is a need to carry out awareness among the consumers on the knowledge about inflation and the ways of coping with it.