Inflation Index Research Articles

Real exchange rate misalignment and business cycle fluctuations in the Asia‐Pacific

AbstractReal exchange rate (RER) misalignment, which is the deviation between the actual real exchange rate from its equilibrium, occurs frequently among developing countries. Studies have shown that RER misalignment may have negative economic implications, such as a decline in economic growth, exports, and export diversification and an increased risk of currency crises and political instability. Using quarterly data for 22 sample countries from 1990 to 2018, this paper investigates the impact of RER misalignment on business cycles in the Asia‐Pacific by employing a panel vector autoregression involving consumer price index (CPI) inflation, output gap, short‐term interest rates, and RER misalignment. We find that RER overvaluation may reduce CPI inflation and short‐term interest rates. We also find that the Asia‐Pacific region is highly heterogeneous in that the output gaps of some countries, particularly from the Southeast Asian region, are more susceptible to RER misalignment shocks.

The Role of Interest Groups in Improving the Quality of Public Policy (Case Study of Minimum Wage Policy in South Sulawesi Province)

The issue of the provincial minimum wage has always been confronted with the interests of who is excluded from a number of directly related interest groups. Trade union groups highlighted issues related to the minimum wage, namely around the issue of increasing nominal wages in relation to decent living conditions every year experiencing an increase in the inflation index. On the other hand, employer groups encourage the creation of business sustainability with minimal labor salary costs. These two issues always have conflicts in the process of determining the minimum wage policy of South Sulawesi Province regarding how interest groups contribute to the minimum wage policy. To answer these problems, argumentative qualitative research methods are used, focusing on the role of interest groups (Trade Union Groups and Employer Groups) in encouraging the formation of quality minimum wage policies, acceptable to all parties. The case of the process of determining the minimum wage policy for South Sulawesi Province in 2022 carried out in the Wage Council forum is the focus and locus of this research. The interactive single case analysis method was used to analyze the data of interest group debates in the Wage Board forum. The results showed that the ability between interest groups in the process of formulating provincial minimum wage policies, tends to differ in exerting pressure and influence on the minimum wage policy posture. Employers tend to use the power of lobbying and negotiation processes in wage board forums, while union groups tend to use the media of demonstrations and intimidation of worker group members. The ability to negotiate in the Wage Council forum has a real impact on the acceptance of policy proposals by the South Sulawesi provincial government authorities. The cohesiveness of interest groups is observed to have a positive effect on the sustainability of the struggle for policy ideas in policy forums, where trade union groups are still fragmented compared to employer groups. In the end, the decision on the provincial minimum wage policy was decided by considering the majority of views of the employer group with an increase of about 6.9% from the previous year's minimum wage.

Factors Determining the Financial Performance of Public Sector Banks in India

Now, an attempt is made in this paper to examine the determinants of profitability in Indian public sector banks during the period 2010-11 to 2021-22. For this purpose, a sample of 12 public sector banks listed in NSE & BSE has been taken. Multiple Linear Regression Analysis has been used to investigate the impact of independent variables such as a bank’s asset size (Size), capital adequacy ratio (CAR), cost to income (CTI), net non-performing assets (NPA), credit risk (CrR), credit deposit ratio (CDR),economic growth (GDP) and consumer price index (CPI) inflation on key bank profitability indicators, i.e., return on assets (ROA), return on equity (ROE) and net interest margin (NIM)as dependent variables, separately.
 The main findings show that bank asset size, cost to income, net non-performing assets, credit deposit ratio, and inflation are negatively related to ROA, ROE, and NIM. Credit risk and economic growth (GDP) have a positive impact on ROA, ROE, and NIM. While the capital adequacy ratio hurt ROA and NIM except for ROE. Even though overall explanatory and macroeconomic factors have a significant 5 percent effect on ROE and NIM as denoted by F-statistics value. Moreover, the banking sector has benefited weakly significantly from both economic growth and the inflationary environment. It is also suggested that if banks concentrate on these variables, they would be able to generate better profitability in the present globalized era. These findings are of value to both academicians and policymakers.

Quantifying the short- and long-run impact of inflation-related price volatility on knowledge asset investment

The study of the link between price volatility, measured in the inflation index, and knowledge asset investment is a topic under intense research. Knowledge asset investment is moving with inflation shocks (high synchronicity), particularly at the troughs and peaks of a business cycle. This research investigates the influence of inflation shocks on knowledge asset investment. Previous studies do not provide a piece of direct empirical evidence on the impact of inflation shocks on knowledge asset investment that is available. We employ panel structural vector autoregression to explore the short and long-run effects of inflation shocks on knowledge asset investment in 29 advanced economies from 1995 to 2019. Our empirical results prove a strong and statistically significant connection between knowledge asset investment and price volatility. In addition, we identify a robust empirical link between knowledge asset investment and the inflation index. The findings further indicate that the inflation index determines knowledge asset investment. Our work contributes to technology innovation, asset allocation, and price-level research to inspire novel research on knowledge asset investment.

Determinants of sharia life insurance productivity in Indonesia

This study examines the productivity and factors influencing the productivity of Sharia-compliant life insurance businesses in Indonesia over six years, from 2014 to 2019. A Two-Stage Malmquist Productivity Index was utilized. The first stage examined productivity using the Malmquist Productivity Index (MPI) method, while the second used the panel data regression method to identify the factors influencing productivity. This research can give insurance management an overview of its productivity levels and the factors affecting productivity. According to the results of the MPI, Islamic life insurance businesses in Indonesia have not yet achieved productivity. The insignificance of technological advancements causes it. The variables of solvency, interest rate, inflation, currency rate, and production index substantially impact Sharia-compliant life insurance companies' productivity. Businesses must be aware of the elements that influence their level of production.

Вплив глобалізації на динаміку інфляції

Introduction. The article studies the impact of globalization on the dynamics of inflation due to increased integration between developed economies and emerging countries in the period 1990-2022, its causes and effects. Problem Statement. Based on the analysis of statistical data, it was established that global inflation in the world economy has a direct impact on domestic inflation in emerging countries, as well as a pronounced structural character in developed countries. This means that even minor disruptions in global trade channels can cause inflation. Purpose. Explaining the impact of globalization on the level of inflation in developed countries and commodity economies through the expansion of trade integration, the strengthening of the role of emerging markets, price competition and the increase in the volatility of interest rates. Methods. According to the results of a dispersion analysis, a hypothesis of the existence of a connection between the components of globalization channels and inflation indicators, which determine the volatility of prices for goods and services in the medium term was investigated . Results. The global components of each inflation indicator are analyzed for the full sample of advanced economies and emerging markets. CPI and producer price index are found to have a significant common global component, accounting for 40% of the difference in CPI inflation and 52% in producer price index inflation of the countries in the sample. However, the role of the common component is much smaller for core inflation and wage inflation. The first main component of inflation accounts for about 21-26% of the variation in inflation for different samples. Conclusions. The increase in the global component of inflation over the past two decades can be explained by major global crises arising from high volatility of commodity prices, greater sensitivity of countries to global shocks due to increased trade or financial integration, or closer direct links between economies. The effect of the transfer of global inflation on domestic prices requires that the central bank should conduct a tighter monetary policy towards achieving the price stability.

PENGARUH INSTRUMEN DERIVATIF MINYAK MENTAH, INDEKS DOLAR AS, INDEKS SAHAM UNGGULAN, SUKU BUNGA FED DAN INFLASI AS TERHADAP HARGA FUTURES EMAS: ANALISIS PERIODE 2012-2021

Gold futures have gained significant attention from investors in recent years, as demonstrated by the increasing trading volumes on the Jakarta Futures Exchange. Gold futures as a popular derivative instrument offers attractive returns and the potential to optimize portfolio allocation, making it one of the most preferred asset classes for investors. This study aims to analyze the influence of key factors such as the US dollar index, S&P 500 stock index, US inflation, FED funds rate, and crude oil futures on gold futures prices. The aim of the study is to provide investors, financial practitioners, and academics with a better understanding of the factors that can influence gold futures prices. This study utilized Error Correction Model as the research method, which effectively addresses the challenges associated with non-stationary time series data and enables the identification of short-term and long-term relationships among variables. The results show that the US dollar index has an inverse relationship with gold futures prices, influencing both the short and long-term. In the long run, an increase in the S&P 500 stock index and US inflation is anticipated to drive up gold futures prices. However, the impact of FED fund rates on gold futures prices is insignificant, primarily due to their low volatility. In addition, crude oil futures, as an alternative asset, have an adverse impact on gold futures prices over the long term.

코로나 기간중 SCFI 급변의 원인과 전망

Purpose – It is very important to forecast and analyze the shipping market in business operation and national policy establishment. However, it has become very difficult to forecast the shipping market cycle after COVID based on the balance of supply and demand as before. It is necessary to analyze this in a new way. Design/Methodology/Approach – In this study, we try to examine the relationship with freight using a new variable in a situation where traditional analysis is impossible. The basic analysis method of this study is panel regression analysis. In the basic formula, the COVID dummy variable was added to the independent variables, and the main variables and interaction terms were created to analyze the effect of economic indicators on shipping costs in the COVID situation. Findings – As a result of analyzing the impact of economic indicators on shipping costs after COVID, it was found that PPI and the Demand Forecasting Index had a negative effect on shipping costs. This is contrary to previous studies which found that shipping costs increase in proportion to economic growth or trade volume. However, economic instability increases the inflation index and the value of goods, and when inflation reaches its peak, the value of goods falls. Research Implications – This study is meaningful in that it analyzes the impact of the current situation on shipping costs, which may be difficult to analyze, and suggests the possibility of predictive research. If we apply this analysis and variables to predictive research, we will be able to derive meaningful results.

The Rising Impacts of the COVID-19 Pandemic and Ukraine Conflict: Inflation and Energy Crisis

This paper examines the inflation and energy crises in various countries during the epidemic and the Russia-Ukraine conflict. This paper focuses on the fluctuations of inflation and energy CPI indices in the European market, the US market, and the Chinese market during the epidemic and under the influence of the Russia-Ukraine conflict. Through research and studies, it found that the Russian-Ukrainian conflict was the direct cause of high inflation in the European economy and the epidemic had less impact on the European market. However, the situation in the US market is very different. The US market was mainly affected by the epidemic and was less affected by the Russian-Ukrainian conflict. Finally, the epidemic had a relatively large impact on the inflation rate in China and the Russian-Ukrainian conflict had a minor impact on the Chinese market. Ukraine conflict may contribute to the dangerous divergence between advanced and emerging market and developing economies. More broadly, it risks fragmenting the global economy into geopolitical blocs with distinct technology standards, cross-border payment systems, and reserve currencies.

A Temporal Analysis of the Cost of Aesthetic Surgical Procedures Over the Past Decade in Relation to Consumer Price Indices and the Stock Market

Abstract Goals/Purpose As inflation continues to rise, virtually all consumer markets are affected. However, the effect of these increases on aesthetic surgical procedures are not well defined. An important relational understanding of these effects can help aesthetic practices offer fair market prices to benefit both patients and practices alike. The purpose of this study was to quantify temporal changes in pricing for the most common aesthetic surgeries and to make comparisons to various indices of inflation and the stock market. Methods/Technique Annual surgical fees for 18 aesthetic plastic surgery procedures were collected from 2007 to 2020 using the ASAPs and ASPS yearly plastic surgery statistic reports. In addition, annual consumer price indices (CPI) for all items, physicians’ services, and hospital services were collected from the U.S Bureau of Labor Statistics. Finally yearly Dow Jones Industrial (DJI) Averages were collected during the same time frame. Correlation statistics, generalized additive models, and parametric tests were performed to understand the relationships of these surgical costs to other indices. Results/Complications A total of 322 annual measurements were collected for analysis. The cumulative percent change from 2007 to 2020 was highest for rhytidectomy, blepharoplasty, and otoplasty 38.1%, 33.4%, and 30.4%, respectively. Liposuction had the lowest overall cumulative percent change at -10.0%. Kendall correlation test revealed that out of all surgeries, male gynecomastia had the strongest correlation with time, Tau= 0.74, p=0.001. Breast augmentation, blepharoplasty, and abdominoplasty also correlated with time. When comparing the temporal change in prices to the various indices through nonparametric general additive modeling, breast augmentation, blepharoplasty, facelift, and liposuction costs changed at a statistically different rate than the overall CPI of all items, p=0.035, 0.018, 0.012, and <0.001, respectively. In contrast, rates of price changes in rhinoplasty, buttock lift, and breast lift surgery have not differed significantly from that of the CPI. The DJI has grown at rates far greater than the price of any aesthetic surgery procedure and models have been statistically different. Conclusion While over the past decade aesthetic surgery costs have changed, certain procedure costs such as the rhytidectomy have greatly increased, while others have modestly increased, and liposuction has even decreased. Interestingly, the cost for the majority of the most performed aesthetic procedures are not greatly impacted by inflation. This suggests that other forces such as supply and demand may have a greater impact on price changes over the years. Many surgical procedures however were found to have similar rates of price change as the CPI, suggesting that these surgeries and their costs are more vulnerable to inflationary adjustments. Furthermore the price changes of aesthetic surgeries seem to be independent of how the stock market fluctuates and therefore possibly independent of other markets as a whole. This study has several limitations, with the data source as its greatest. The ASPS and ASAPs statistic reports are based on surveys from national members and computational adjustments, which have inherent biases and can vary significantly in any given year. Furthermore the various modeling and statistical analyses performed herein were based on several assumptions and estimates. An understanding of the price trends in aesthetic surgery over time and in relation to consumer price indices and the DJI can help plastic surgery practices and patients better appreciate the economics surrounding aesthetic surgeries.

106 Reimbursement Trends in Neuroendovascular Interventions 2013-2022

INTRODUCTION: Neuroendovascular surgeries are increasingly important, particularly with the advent of thrombectomy as the gold standard in the management of large vessel stroke. METHODS: The Physician Fee Schedule Look-Up Tool was queried from 2013 to 2019 for all primary Current Procedural Terminology (CPT) codes identified by the American Medical Association as pertaining to endovascular procedures of the nervous system (61623, 61624, 61630, 61635, 61626, 61645, and 61650). The facility prices were averaged for each procedure and subsequently adjusted for inflation using the United States Bureau of Labor Statistics’ Consumer Price Index Inflation Calculator as adjusted to January of 2022. Statistical analyses, including data aggregation, exploratory analysis, and propensity adjustment, were performed using R, version 4.0.1 (The R Foundation, Vienna, Austria). The two-sided Mann-Kendall trend test, a non-parametric statistical test that assesses for monotonic trends in either an upward or downward trend, was utilized to assess for trends over time. Within each year analyzed, a Chi-squared test for trend in proportions was used. A significance level of 0.05 was used. RESULTS: Decreases in reimbursement were noted for all neuroendovascular procedures. This trend was statistically significant for temporary balloon occlusion, CPT61623 (2013:$677.04; 2022:586.96; p: 0.01), central nervous system transcatheter permanent occlusion or embolization, CPT61624 (2013:$1349.61; 2022:$1175.02; p: 0.02), non-central nervous system transcatheter permanent occlusion or embolization, CPT61626 (2013:$1040.86; 2019:$912.29; p: 0.002), stent placement, CPT61635 (2013:$1697.18; 2022:$1490.68; p: 0.05), and when viewed as aggregate procedures (2013:$1265.01; 2022:$1000.45; p < 0.01). CONCLUSIONS: Inflation-adjusted reimbursement is decreasing for certain neuroendovascular procedures over time and for all neuroendovascular procedures when viewed as an aggregate group. This suggests a need for reevaluation of the market value and advocacy for neuroendovascular providers and procedures in the era of value/quality-based care.

Impacts of Political Risk and Macroeconomics Factors Towards Foreign Direct Investment in Developing Countries

This study examines the relationship between macroeconomic factors and foreign direct investment (FDI) inflows in developing countries. The data from the World Bank covers 21 years, from 2000 to 2020 was analyzed using the panel regression approach with E-Views. Panel regression analysis, including model selections and diagnostics, is used for inferential analysis. The main contribution of this study is the influence of political factors on FDI inflows. Political stability and corruption control are technically the most important conditions for FDI inflows in developing countries and were introduced in this study. This study found a positive relationship between GDP growth rate, imports, inflation, and corruption index with FDI inflow, confirmed by previous studies. The study also implies that the exchange rate, exports, and political stability have a negative relationship with the level of FDI in developing countries. In addition, the study found that GDP growth rate, imports, and exports significantly impact FDI inflows in developing countries, while the other variables are not significant. In other words, this result shows that macroeconomic and political factors such as import, export, exchange rate, corruption control, and political stability impact FDI inflows. Moreover, this paper provides policy recommendations to support developing countries' economies by attracting FDI and increasing its inflow.

Inflation and Stock Market Returns: An Empirical Study of Sectoral Indices with Special Reference to India

In this study an attempt has been undertaken so as to establish the relationship between sectoral indices returns and inflation numbers. In order to achieve the objective of the study, all the sectoral indices have been taken in the study except two (02) indices because they were introduced in the National Stock Exchange in the recent past and, therefore, their data is not available for the whole reference period of the study. The indices that are in the study are, (CNX Auto Index, CNX Bank Index, CNX Energy Index, CNX Finance Index, CNX FMCG Index, CNX IT Index, CNX Metal Index, CNX MNC Index, CNX Pharma Index, CNX PSU Bank Index). The study took eight years of reference period throughout which all the indices that are included in the sample were available. The researchers have employed Pearson correlation method so as to establish the relationship between inflation and sectoral indices returns. The findings of the study put forth that most of the indices do possess statistically significant relationship with inflation numbers.

To Study Inflation Impact in Malaysia Against the Stock Portfolio Investment in Bursa Malaysia

Background: The rising of the inflation had triggered to need to choose the right investment to beat the inflation. The study will focus on the potential impact in investing in diversified stock portfolio within the stock market exchange in Bursa Malaysia. Aim: The goal of the research is target to understand the potential existence of the positive correlation and relationship between the KLSE market index and the inflation rate through the CPI. Method: The quantitative analysis method will be conducted to study the historical data based on the past 20 years’ trend of data from both inflation rate through CPI as well as the KLSE market index. The average yearly growth for the past 20 years performance will also be assessed to understand the comparison on the growth of the inflation and market index. Findings: The findings had observed that the investment for the portfolio investment representing through the KLSE market index had not been sharing the significant positive correlation and relationship with the inflation rate on CPI. However, the growth rate on average had obsvered higher rate of return on KLSE market index which is 5.666% over the inflation rate through CPI that recorded only 2.018% indicating that the investment in diversified stock portfolio will obsvered greater return to cover for the inflation rate in Malaysia.

Inflation Measurement in China under the Coronavirus Pandemic

The consumer price index (CPI) and core consumer price index (core-CPI) are the main indicators reflecting the price level and inflation of a country or region. The two indicators and their transmission relationship are also widely concerned by the economic community. Theoretically, these two indexes will not fluctuate suddenly. However, in recent years, due to the uncertainty of the Corona Virus Disease 2019, the trends of both indicators have declined to vary degrees. This paper will start with the CPI, CORE-CPI, and inflation rate from 2017 to the present, and analyze the reasons behind their abnormal phenomenon. The results showed that the pork sales volume was the main reason for causing the fluctuations. Understanding the reasons for the decline will help China quickly formulate the most effective plan and help the inflation index to return to the right track. At the same time, it timely leads the country out of difficulties.

Macroeconomic effects of demand and supply shocks in the global oil price on the Vietnamese economy

PurposeThe purpose of this paper is to examine the effects of several structural shocks in oil prices on the Vietnamese economy and answer three key research questions: Is there a relationship between oil price shocks and macroeconomic indicators in Vietnam? How do different types of oil price impulses affect Vietnamese inflation and economic performance? To what extent do structural shocks in oil prices explain variations in Vietnam’s macroeconomic indicators?Design/methodology/approachLower triangular Cholesky decomposition is performed on a short-term impact matrix in a two-block structural vector autoregressive model. The data set is defined monthly, from January 2000 to December 2021. The contributions of structural shocks in oil prices to the domestic variances are analysed using variance decomposition methods. In this study, both forecast error variance decomposition and historical decomposition are used.FindingsThe consequences of oil price fluctuations on Vietnamese output and inflation depend on different sources of oil price shocks. In comparison, oil supply shocks have an insignificant effect on both domestic industrial output and consumer price index inflation; however, positive shocks in aggregate and precautionary oil demands increase these domestic indicators substantially and sustainably. An analysis of variance decompositions reveals that supply-side oil shocks have very limited explanatory power for variations in domestic variables. Nevertheless, the contributions of unanticipated demand-side booms to domestic variations in the past and projected forecasts are considerable.Research limitations/implicationsThe findings from this research uncover potential risks for Vietnam’s economic prospects if the consequences of oil price shocks are not managed effectively.Originality/valueGiven the lack of economic sensitivity to supply-side oil shocks and the strong response to shifts in oil demands, greater pressure on the domestic economy is likely when Vietnam increases its dependence on oil imports.

Pengaruh Tingkat Inflasi, Suku Bunga, Harga Emas, Nilai Tukar, dan Indeks Harga Saham Gabungan terhadap Kinerja Reksa Dana Saham Syariah Periode 2017-2021

This study aims to determine the influence of variable inflation, interest rates, gold prices, exchange rates, and composite stock price indices on the performance of Islamic stock mutual funds. The data used are 8 sharia stock mutual fund data registered with the Financial Services Authority (OJK) in the 2017-2021 period. Data analysis techniques are carried out by classical assumption testing, hypothesis testing using multiple linear regression analysis. The results showed that inflation, interest rates, gold prices, rupiah exchange rates against the US dollar (USD) and JCI simultaneously had a significant effect on the performance of Islamic stock mutual funds. Partial inflation with a regression value of 0.0403, interest rate with a regression value of 0.0361, gold price with a regression of 0.0428, and exchange rate with a regression of 0.0002 has a significant effect on mutual fund performance. As for the JCI with a regression value of 0.05218, there is no significant influence on the performance of Islamic stock mutual funds.

Analysis of The Influence of Macro Variables of Interest, Exchange, And Inflation On The Joint Stock Price Index

The stock exchange becomes one of indicator shown the modernity of one country and investment alternative as well. Stock Exchange activity reflected by an Indonesia Composite Index fluctuation which are influenced by macroeconomics variables such as interest rate, exchange value, and inflation. This study aims to determine the effect of, interest rates, exchange rate of rupiah and inflation against the Indonesia Composite Index(ICI. The type of research used explanatory research, with quantitative approach and took all time series data covering Interest Rates, Rupiah Exchange Rate, Inflation and Indonesia Composite Index(ICI) for the period of 1996 until 2020. The data analysis used multiple linear regression analysis using SPSS 23. The results of this studyindicate that the value of coefficient of determination(R2) 72.9% which means independent variables affect the dependent variable 72.9% and the rest is 27.1% influenced by other variables outside this study. F test results indicate that the independent variables of interest rate, exchange rate of rupiah, and inlation rate simultaneously have significant effect on the Indonesia Composite Index(ICI). The result of t test shows that the, interest rate variable partially have significant negative effect on Indonesia Composite Index(ICI), exchange rate variable partially have significant positive effeft on Indonesia Composite Index, while inflation variable partially negatively influenced the Indonesia Composite Index(ICI).

Analysis of The Influence of Macro Variables of Interest, Exchange, And Inflation On The Joint Stock Price Index

The stock exchange becomes one of indicator shown the modernity of one country and investment alternative as well. Stock Exchange activity reflected by an Indonesia Composite Index fluctuation which are influenced by macroeconomics variables such as interest rate, exchange value, and inflation. This study aims to determine the effect of, interest rates, exchange rate of rupiah and inflation against the Indonesia Composite Index(ICI. The type of research used explanatory research, with quantitative approach and took all time series data covering Interest Rates, Rupiah Exchange Rate, Inflation and Indonesia Composite Index(ICI) for the period of 1996 until 2020. The data analysis used multiple linear regression analysis using SPSS 23. The results of this studyindicate that the value of coefficient of determination(R2) 72.9% which means independent variables affect the dependent variable 72.9% and the rest is 27.1% influenced by other variables outside this study. F test results indicate that the independent variables of interest rate, exchange rate of rupiah, and inlation rate simultaneously have significant effect on the Indonesia Composite Index(ICI). The result of t test shows that the, interest rate variable partially have significant negative effect on Indonesia Composite Index(ICI), exchange rate variable partially have significant positive effeft on Indonesia Composite Index, while inflation variable partially negatively influenced the Indonesia Composite Index(ICI).

A Relationship among Interest Rate, Inflation, Population and House Price Index

The Financial Stability Review Second Half 2021 of Bank Negara Malaysia’s (BNM) has reported that the number of unsold houses in Malaysia remained elevated at 180,702 units in the third quarter of 2021 (Q3’21). This has attracted the researcher to explore more on House Price Index (HPI) in Malaysia. HPI measures volatility prices of residential housing in Malaysia over time. The objective of this study is to identify whether there is a relationship among interest rate, inflation rate, population, and house price index in Malaysia by using STATA software. The annual time series data spanning from 2003 to 2021 is used to achieve the objective of this research. The analysis of such times series data was made through the Johansen Test and it was discovered that all explanatory variables were related to HPI in a long run; in which it is negatively related to interest rate, inflation rate and population. However, when the Granger Causality Test was applied to the same time series data, HPI was found to be affected by both the interest and the inflation. Population, on the other hand, does not influence HPI in the short run dynamics. Therefore, it is concluded that most variables used in the study are significant in determining HPI. It is recommended that more independent variables such as real GDP per capita, real domestic credit, construction costs and land supply that can influence HPI should be added for future studies .