Enhancing CPI accuracy: A comparative analysis of weighting techniques and consumer behaviour in Malaysia
This study addresses the limitations of traditional Consumer Price Index (CPI) calculation methods by proposing an improved framework that incorporates optimized weighting techniques. The proposed approach utilizes nonlinear programming to better reflect consumer spending behavior in Malaysia, enhancing the accuracy and relevance of inflation measurement. Empirical analyses reveal fluctuations between the newly generated weights and those provided by the Department of Statistics Malaysia (DOSM), largely influenced by consumer behavior, economic conditions, and supply-