Analysis of the Effect of Consumer Price Fluctuations on Inflation in the City of Medan

Fitrawaty, Ainul Mardiyah, Haikal Rahman, Mohammad Joharis

2018

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, whereas in the long term inflation contributors in the City of Medan are expenditure groups in the health sector.

Paper Citation

in Harvard Style

Fitrawaty., Mardiyah A., Rahman H. and Joharis M. (2018). Analysis of the Effect of Consumer Price Fluctuations on Inflation in the City of Medan.In Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES, ISBN 978-989-758-432-9, pages 65-70. DOI: 10.5220/0009492900650070

in Bibtex Style

@conference{unicees18,
author={Fitrawaty and Ainul Mardiyah and Haikal Rahman and Mohammad Joharis},
title={Analysis of the Effect of Consumer Price Fluctuations on Inflation in the City of Medan},
booktitle={Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,},
year={2018},
pages={65-70},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009492900650070},
isbn={978-989-758-432-9},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,
TI - Analysis of the Effect of Consumer Price Fluctuations on Inflation in the City of Medan
SN - 978-989-758-432-9
AU - Fitrawaty.
AU - Mardiyah A.
AU - Rahman H.
AU - Joharis M.
PY - 2018
SP - 65
EP - 70
DO - 10.5220/0009492900650070