Proceedings of the 3rd International Conference of Business, Accounting, and Economics, ICBAE 2022, 10-11 August 2022, Purwokerto, Central Java, Indonesia

Research Article

Analysis of the Development of the Consumer Price Index in Indonesia 2014-2020

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  • @INPROCEEDINGS{10.4108/eai.10-8-2022.2320766,
        author={Roswita  Hafni and Prawidya  Hariani},
        title={Analysis of the Development of the Consumer Price Index in Indonesia 2014-2020},
        proceedings={Proceedings of the 3rd International Conference of Business, Accounting, and Economics, ICBAE 2022, 10-11 August 2022, Purwokerto, Central Java, Indonesia},
        publisher={EAI},
        proceedings_a={ICBAE},
        year={2022},
        month={8},
        keywords={consumer price index gross regional domestic product inflation},
        doi={10.4108/eai.10-8-2022.2320766}
    }
    
  • Roswita Hafni
    Prawidya Hariani
    Year: 2022
    Analysis of the Development of the Consumer Price Index in Indonesia 2014-2020
    ICBAE
    EAI
    DOI: 10.4108/eai.10-8-2022.2320766
Roswita Hafni1,*, Prawidya Hariani1
  • 1: Muhammadiyah University of North Sumatra
*Contact email: roswitahafni@umsu.ac.id

Abstract

The phenomenon that occurs in the annual report of the Indonesian economy is that economic growth declines if the inflation rate cannot be controlled properly. The inflation rate in Indonesia is easily rises, with various factors that influence it, making it increasingly difficult to control inflation, so that in controlling it, the government must know inflation-forming factors. This research aims to estimate the factors that influence inflation in Indonesia, using panel data, which is data from all provinces in Indonesia from 2014 to 2019. The estimation results are Inflation which is influenced by CPI Housing Electricity Water and CPI_Food-to-Drink Cigarettes, CPI Foodstuffs, Aggregate consumption, GRDP Per capita, has a contribution of 74.9%, while the remaining 25.1% is explained by other variables such as interest rates, exchange rates, etc. Partially, Inflation is significantly affected by the CPI, while Aggregate consumption and Per capita GRDP do not significantly affect Inflation.