Abasyn Journal of Social Sciences. Vol.6, No.2

The Influence of Dollar, Gold, and Petrol Prices on Inflation

Zarshad Ahmad1, Yasir Rahim2

1BBA, Abasyn University Peshawar
2Lecturer, Abasyn University, Peshawar

The current study aims to produce a framework that helps in understanding how the increase of prices creates an effect on Inflation and how the increase in inflation creates an effect on other inflationary measures. The center of attention of this study is to check the influence on inflation in Pakistan. The study would let the readers know the influence and will help them in further studies. This study examines the relationship between the Dollar, Gold and petrol prices on inflation in Pakistan. The study is conducted for the period July 2008 to June 2013 on monthly basis. Simple linear regression test using SPSS were employed to analyze the data. ANOVA and Coefficient results show the positive relationship. The coefficient of correlation in this study is .876
which means that they have a very strong relationship with each other and creating influence. The result produced in this study shows the high influence of Dollar, Gold and Petrol prices on Inflation in Pakistan. This study should be further extended by using other variables, such as; interest rate, oil prices, energy prices, CPI etc. to improve the economic condition of Pakistan. The results indicate that these three factors played a dominant role in the recent inflation. This finding will contribute to the government of Pakistan in making tight policies to control the inflation
rate using Dollar, Gold and Petrol prices, which makes the current study unique.

Keywords: Inflation, Dollar prices, Gold prices, Petrol prices1




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