ANALISIS KETERKAITAN HARGA ANTAR KELOMPOK KOMODITAS PEMBENTUK INFLASI DI SUMATERA BARAT

Gaffari Ramadhan
Additional contact information
Gaffari Ramadhan: Bank Indonesia

Bulletin of Monetary Economics and Banking, 2009, vol. 11, issue 3, 233-274

Abstract: This study analyzes the correlation and the interaction among commodity groups which determine the inflation rate in West Sumatera. Using the monthly data from January 2002 to December 2008, the estimation applies the Vector Error Correction Model (VECM) in order to analyze the dynamics of commodity prices in the model. The results show some groups have significant contributions in determining other group prices. We found that the volatility of Prepared Food, Drink, Cigarette, and Tobacco is affected by Food group, Transportation, Communication and Financial Services. All commodity group is mostly affected by its own movement, especially for the high regulated prices group; Water, Electricity, and Fuel group including Housing. This paper underlines that in controlling regional inflation, the partial effort by focusing only on the basket goods which gives the highest contribution to the regional inflation (i.e. foodstuff and prepared food) is not effective when the region faces high volatility in other basket goods (i.e. transportation). The price determining of basket goods is a simultaneous process, and controlling the regional inflation needs greater concern to all goods. The government intervention on the price setting is also one of the important parts in causing the volatility of the basket goods.

Keywords: Consumer Price Index; regional inflation; vector error corection model; impulse response; variance decomposition (search for similar items in EconPapers)
JEL-codes: C32 E31 R10 (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations:

Downloads: (external link)
https://bulletin.bmeb-bi.org/cgi/viewcontent.cgi?article=1383&context=bmeb (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:idn:journl:v:11:y:2009:i:3b:p:233-274

DOI: 10.21098/bemp.v11i3.338

Access Statistics for this article

Bulletin of Monetary Economics and Banking is currently edited by Paresh Narayan

More articles in Bulletin of Monetary Economics and Banking from Bank Indonesia Contact information at EDIRC.
Bibliographic data for series maintained by Lutzardo Tobing ( this e-mail address is bad, please contact ) and Jimmy Kathon ().