Bulletin of Monetary Economics and Banking

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There are some events which are expected effecting CPI»s fluctuation, i.e. financial crisis 1997/ 1998, fuel price risings, base year changing»s, independence of Timor-Timur (October 1999), and Tsunami disaster in Aceh (December 2004). During re-search period, there were eight fuel price risings and four base year changing’s. The objective of this research is to obtain multi input intervention model which can describe magnitude and duration of each event effected to CPI. Most of intervention re-searches that have been done are only contain of an intervention with single input, ei-ther step or pulse function. Multi input intervention was used in Indonesia CPI case because there are some events which are expected effecting CPI. Based on the result, those events were affecting CPI. Additionally, other events, such as Ied on January 1999, events on April 2002, July 2003, December 2005, and September 2008, were affecting CPI too. In general, those events gave positive effect to CPI, except events on April 2002 and July 2003 which gave negative effects.JEL Classification: C22, C43, E31, I38Keywords: CPI, Multi Input Intervention, and Fuel Price Rising.

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