Analysis of the Effect of Gross Domestic Product and Price of Food Commodities on Inflation in Indonesia

Kurnia Novianty Putri, Fitrawaty, Sri Fajar Ayu

2018

Abstract

The purpose of this study was to find out how the effect of gross domestic product, the price of rice, the price of bulk cooking oil, the price of sugar, the price of curly red chili, and the price of chicken meat on inflation in Indonesia. The research method used was the regression technique with Error Correction Model data analysis. Data was processed using E-views 7.0. At unit root test, it is known that all observation variables were stationary. In determining the optimal lag length shows the criteria of Akaike Information Criterion (AIC), Schwarz Criterion (SC) and Human Quinn Criterion (HQ) and the smallest value was chosen between the optimal lag value of Schwarz Criterion (SC) at lag 1. The cointegration test results indicate that the variable was in a long-term equilibrium condition, so the regression results were cointegrated regression. Result of the classic assumption test were, data was normally distributed, free from autocorrelation, liberaly from the symptoms of multicollinearity, and free from the heteroscedasticity. The results obtained were the effect of gross domestic product variables, price of medium quality rice, price of bulk cooking oil prices in the short term positif and significant on inflation in Indonesia. Price of curly red chilli in the short term positif and not significant on inflation in Indonesia. Price of sugar and price of chicken meat in the short term negatif and not significant on inflation oi Indonesia. Also found that the effect of gross domestic product variables in the long term positif and significant on inflation in Indonesia, price of medium quality rice and price of curly red chilli in the long term positif and not signifikan on inflation in Indonesia. Price of bulk cooking oil prices, price of sugar, and price of chicken meat in the long term all not significant on inflation of Indonesia.

Paper Citation

in Harvard Style

Putri K., Fitrawaty. and Ayu S. (2018). Analysis of the Effect of Gross Domestic Product and Price of Food Commodities on Inflation in Indonesia.In Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES, ISBN 978-989-758-432-9, pages 473-480. DOI: 10.5220/0009502404730480

in Bibtex Style

@conference{unicees18,
author={Kurnia Novianty Putri and Fitrawaty and Sri Fajar Ayu},
title={Analysis of the Effect of Gross Domestic Product and Price of Food Commodities on Inflation in Indonesia},
booktitle={Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,},
year={2018},
pages={473-480},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009502404730480},
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 Gross Domestic Product and Price of Food Commodities on Inflation in Indonesia
SN - 978-989-758-432-9
AU - Putri K.
AU - Fitrawaty.
AU - Ayu S.
PY - 2018
SP - 473
EP - 480
DO - 10.5220/0009502404730480