Analysis of the Factors Influencing the Inflation Rate in Indonesia During the Covid-19 Pandemic

Bela Nanda Pebriyanti, Yuni Prihadi Utomo

Abstract


One of Indonesia's most prevalent and problematic economic issues is inflation. Inflation has a big impact on the economy as a whole, including external balances, competitiveness, and income distribution. As a result of the government's adoption of the social distancing policy, the COVID-19 pandemic has had a detrimental impact on public consumption and economic growth in 2020. The purpose of this study is to look into the elements that influenced Indonesia's inflation rate during the COVID-19 pandemic. Secondary data in the form of a time series in the form of monthly data from January 2019 to December 2021 was acquired from numerous sources, including the Central Statistics Agency (BPS) and Bank Indonesia (BI). The ordinary least squares approach is used for analysis (OLS). The findings revealed that the variable Amount of Money in Circulation had a negative and insignificant effect on inflation. Bank Indonesia certificates with variable interest rates have a favorable and considerable effect on inflation. Meanwhile, the exchange rate, exports, and household consumption have a small but favorable impact on inflation.



Keywords


Inflation, Money Supply, BI Rate, Exchange Rate, Export, Consumption, OLS

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References


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DOI: https://doi.org/10.30596/miceb.v1i0.125

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