calculating Inflation Rate for Malaysia

First, the inflation rate can be calculated from consumer price index as,
Inflation rate for year 2000 = consumer price index at year 2000/consumer price index at year 1999.

Time series data for Malaysia Consumer Price Index can be obtain for free at malaysia department of statistic website here.

The results is in the table below.

Few implications,

i. Inflation rate usually rise when economy is booming, fall when economy is in recession.
ii. Average inflation for past 10 years (2.38%) is lower than 32 years average (2.98%), suggesting a slowing down of inflation as economy expanding in the age of globalization.
iii. when inflation rate is at 2.38% average,
Real interest rate = nominal interest rate - inflation rate stood at below 1%.
Keeping money in fixed deposit or buying government bond for long term is not a particular good choice.