Authors:
Fitrawaty
;
Ainul Mardiyah
;
Haikal Rahman
and
Mohammad Joharis
Affiliation:
Universitas Negeri Medan, Indonesia
Keyword(s):
Consumer Price Index, Inflation, Expenditure Groups
Abstract:
Inflation as measured by the Consumer Price Index (CPI) in Indonesia is grouped into seven expenditure groups consisting of: food products; processed food, beverages, cigarettes and tobacco; housing groups for water, electricity and fuel; clothing groups; health groups; education, recreation and sports groups; transportation, communication and financial services. Inflation that occurs can come from all expenditure groups. This research becomes important, so that the policy determination bias relates the prices of all expenditure groups. This study aims to identify; problems and causes, and the City of Medan inflation model. The method used is the VECM method, which utilized the assumptions test, such as stationary test, lag length test, stability test and cointegration test. The results of the study show that in the short term several variables do not significantly influence the current inflation rate. The causes of inflation are education, recreation and sports expenditure groups, w
hereas in the long term inflation contributors in the City of Medan are expenditure groups in the health sector.
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