Article Title

DETERMINANT OF FOOD INFLATION

Authors

Bambang Indra Ismaya, Bank Indonesia - IndonesiaFollow
Donni Fajar Anugrah, Bank Indonesia - IndonesiaFollow

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.

Recommended Citation

Ismaya, Bambang Indra and Anugrah, Donni Fajar (2018) "DETERMINANT OF FOOD INFLATION," Bulletin of Monetary Economics and Banking: Vol. 21: No. 1, Article 4.
DOI: https://doi.org/10.21098/bemp.v21i1.926
Available at: https://bulletin.bmeb-bi.org/bmeb/vol21/iss1/4

First Page

81

Last Page

94