Inflation and Coping Strategies: Analysis of consumer in Penang, Kedah and Perlis
Inflation has become a hot issue in Malaysia recently because it associated with the cost of living. This study helps policy maker to understand the coping strategies adopted by households in order to cope up inflation for the purpose of designing and implementing appropriate policies and programs for low income households. Therefore, this study has two objectives. First, to investigate households who are affected by inflation and second, to investigate the coping strategies adopted by households. This study conducted a survey in Penang, Kedah and Perlis using structured questionnaire to gather the information. The study concluded that almost 90% of the respondents were effected by inflation. The most effected were low income households, married and living in urban area and their coping strategies were buy less quantity, buy lower quality and less quantity and buy lower quality of goods according to the types of goods.
Bloom, N. 2009. The impact of uncertainty shocks. Econometrica, 77(3), 623-685.
Doepke, M., & Schneider, M. 2006. Inflation and the redistribution of nominal wealth. Journal of Political Economy, 114(6), 1069-1097.
Eggertsson, G. B. 2006. he deflation bias and committing to being irresponsible. Journal of Money, Credit and Banking, 38(2), 283-321.
Eggertsson, G. B., & Woodford, M. 2003. he zero bound on interest rates and optimal monetary policy. Brookings Papers on Economic Activity, 34(1), 139-235.
Fahmida Dil Farzana, Ahmed Shafiqur Rahman, Sabiha Sultana, Mohammad Jyoti Raihan, , Md Ahshanul Haque, Jillian L. Waid, Nuzhat Choudhury & Tahmeed Ahmed. 2017. Coping strategies related to food insecurity at the household level in Bangladesh. PLoS ONE, 12(4), 1-17.
FOA. 2009. The state of food and agriculture. Rome: FAO.
Gross, I., Crandall,E., & Knoll,M. 1980. Management for Modem Families. Englewood Cliffs, New Jersey: Prentice Hall.
Hogarth,J.M., Krein, S.F., & Rettig, K.D. 1984. Fighting Inflation, Urban and Rural Strategies. Journal of Extension, 22(2). Retrieved from https://www.joe.org/joe/1984march/a2.php
Howard, D. H. 1978. Personal saving behaviour and the rate of inflation. The Review of Economic and Statistics, 60, 547-554.
Jelani Razali and Nurhani Aba Ibrahim. 2010. Coping with inflation in urban area. Institute of Electrical and Electronocs Engineers. Kuala Lumpur, Malaysia,: Institute of Electrical and Electronocs Engineers.
Mian, A., Rao, K., & Sufi, A. 2013. Household balance sheets, consumption, and the economic slump. The Quarterly Journal of Economics, 128(4), 1687-1726.
Nations, F. a. 2009. The food and agriculture. Rome: FAO. Retrieved May 19, 2020, from http://www.fao.org/3/a-i0680e.pdf
Nyamekye,E. G., & Poku,A.E. 2017. What is the eﬀect of inﬂation on consumer spending behaviour in Ghana? Retrieved May 14, 2020, from Munich Personal RePEc Archive: https://mpra.ub.uni-muenchen.de/81081/
Pa´stor, L., & Veronesi, P. 2013. Political uncertainty and risk premia. Journal of Financial Economics, 110(3), 520-545.
Rabiul Islam, Ahmad Bashawir Abdul Ghani, Emil Mahyudin, & Narmatha Manickam. 2017. Determinants of Factors that Affecting Inflation in Malaysia. International Journal of Economics and Financial Issues,, 7(2), 355-364.
Rafiqa Murdipi & Siong Hook Law. 2016. Dynamic Linkages between Price Indices and Inflation in Malaysia. Dynamic Linkages between Price Indices and Inflation in Malaysia, 50(1), 41 - 52.
Sarath, S. K, & Jeevika, W. 2011. Coping with food price hikes: strategies of the poor in Kandy, Sri Lanka. Asia-Pacific Research and Training Network on Trade Working Paper Series, No. 100, May 2011, 1-39. Retrieved May 19, 2020, from https://www.researchgate.net/publication/254412137_Coping_with_food_price_hikes_strategies_of_the_poor_in_Kandy_Sri_Lanka
Singh, S. 2016. Economic changes, inflation dynamics and policy responses: the Malaysian experience. Retrieved from https://www.bis.org/bispapers/index.htm
Tandon, S., & Landes,M. 2014. Coping Strategies in Response to Rising Food Prices: Evidence From India. Economic Research Service, United States Department of Agriculture. USA: United States Department of Agriculture. Retrieved from https://www.ers.usda.gov/webdocs/publications/45292/49576_err177.pdf?v=41961
Zainul, E. 2020. Malaysia’s inflation to rise but remain modest in 2020 — analysts. Kuala Lumpur, Kuala Lumpur, Malaysia.