Inflation in Malaysia and Singapore stems from supply constraints, monetary shocks, and global oil price fluctuations, with overconsumption intensifying demand pressures. This study investigates the short-term and long-term determinants of inflation using panel data and econometric methods. The Pedroni cointegration test confirms long-run relationships among variables, while Pesaran’s tests show no cross-sectional dependence and consistent effects across countries. Long-run estimates are obtained using Fully Modified Ordinary Least Squares, and short-run effects are analysed through Pooled Ordinary Least Squares. Interaction terms reveal that internet usage moderates the relationship between consumption and inflation. The findings suggest that digital engagement and financial literacy can curb excessive consumption and stabilise prices. By integrating macroeconomic variables, overconsumption indicators, and communication factors, this study enhances understanding of inflation dynamics and supports policy strategies aimed at promoting responsible spending and macroeconomic stability in emerging economies.