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Bulletin of Monetary Economics and Banking

Document Type

Article

Abstract

In this paper, we investigate the determinants of food inflation in Indonesia. Usingquarterly data (2008:Q1 to 2017:Q4) and a GMM estimator, we show that backwardlookingand forward-looking expectations have a strong impact on food inflation.Additionally, we show that the determinants of general food price inflation, such asfood production, agriculture sector output, infrastructure, food import, agriculturesector credit, demand level (M1/consumption), and seasonal event (Eid Mubarak), arehighly significant. Backward-looking and forward-looking expectations, domestic oilprice, and level of demand have contributed to high food price while factors relating togeneral food price inflation have reduced food price.

First Page

81

Last Page

94

Creative Commons License

Creative Commons Attribution-NonCommercial 4.0 International License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Indonesia

Affiliation

Bank Indonesia

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