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.
Ismaya, Bambang Indra and Anugrah, Donni Fajar
"DETERMINANT OF FOOD INFLATION,"
Bulletin of Monetary Economics and Banking: Vol. 21:
1, Article 4.
Available at: https://bulletin.bmeb-bi.org/bmeb/vol21/iss1/4