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How do we measure inflation?
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Malaysian
Economic
Indicators


There are two (2) main price indexes that measure inflation:



Economists often use these two indexes hand in hand to track
the level of inflation in an economy. However, it is interesting
to note that PPI often increase before the CPI, as PPI measures
the cost of production which is the first item in the production
chain. Hence, it would be likely that producers would pass on
the higher cost to consumers by raising the final sales price of
goods and services.
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