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时间:2014-10-25 15:55来源 作者:英国论文网 点击联系客服: 客服:Damien

Global inflation rate
In the past three oil crises, which were in year 1974, 1980 and 1990, the global inflation rate has increased tremendously with an average rate of 11.4%, 13.58% and 5.39%. Most of the countries are badly affected and this resulted in global inflation. High inflation rate or hyperinflation turns economic growth into contraction with the increase price of goods and services. Inflation refers to a rise in price that causespurchasing powerof a nation to fall. The most common gauge of inflation is known as the consumer price index (CPI) which measures the price fluctuation of basic consumer goods and services. It is said that a country is in healthy economic growth if its annual percentage remains low (less than 5%). Inflation may due to demand pull inflation (increase in government and private spending) or cost-push theory (increase in wage or oil price). Oil price is said to be the most significant factor which influences Malaysia's inflation the most.
Analysis on crude oil price movements
Figure 1 reflects the oil price movements from year 1996 to 2009. It is observed that more than a decade ago, crude oil prices were between $20 to $40/barrel with its ups and downs throughout the late 90s. The price went up slightly before dropping again after the 1997 Asian financial crisis. In the beginning of the 21st century however, the prices started to climb to almost double that to the average value of $40. Volatility is high as by 2002 the value dropped back to about $20 right after the September 11 Attacks before surging up again almost immediately. It can be said that from 2003 onwards, the price of crude oil throughout the world began to steadily ascend higher and higher over the few years till late 2006. This is mainly due to concerns on exhausting oil-wells throughout the world, the post US-Iraq war situation, OPEC's stand on providing the world with limited supply with its reason to preserve resources, increasing growth and dependency on consumption of crude oil in the world and more. All of these add into the weight and urgency that spiked conspiracy and panic into the industry, added that market players took advantage of the situation to further propel prices into the sky.(责任编辑:BUG)

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