The Effect of Food Price Stabilization on Inflation in West Nusa Tenggara 2019-2023
Journal Title: Journal of Economics, Finance and Management Studies - Year 2024, Vol 7, Issue 11
Abstract
One of the primary contributors to the inflation rate in West Nusa Tenggara Province is the fluctuation of prices for food commodities. The objective of this study is to examine the extent to which fluctuations in food commodity prices, including those of rice, red chili, and shallots, contribute to inflationary trends in West Nusa Tenggara. The data used is monthly data on inflation and food commodity prices from 2019-2023 obtained from BPS (Central Bureau of Statistics), DKP (Food Security Agency), and the Agriculture Office of West Nusa Tenggara Province. The analysis method used is vector autoregression (VAR), which includes stationarity test, VAR stability test, optimal lag test, cointegration test, VAR estimation, impulse response function (IRF), and variance decomposition. The results of this study indicate that in the short term premium rice prices, curly red chili prices, and shallots do not affect inflation. Conversely, in the long run, the variable price of shallots does not affect inflation, while the variable price of premium rice and curly red chili prices exert an influence on inflationary pressures in West Nusa Tenggara Province. The Variance Decomposition Test indicates that the price of curly red chili contributes 37.24 percent to inflation in the fifth period, while premium rice has an effect of 8.66 percent on inflation in the second period and shallots have an effect of 7.93 percent on inflation in the fifth period.
Authors and Affiliations
Rani Ayu Anjani , Emi Salmah , Vici Handalusia,
Keywords
Related Articles
- EP ID EP750378
- DOI 10.47191/jefms/v7-i11-01
- Views 3
- Downloads 0
Quality Analysis of Profit at Pdam Tirta Anoa Kendari City
The purpose of this study was to determine the quality of earnings at PDAM Tirta Anoa Kendari City was adequate. The type of data used in this research is qualitative data. Sources of data used in this study primary data...
Determinants Influencing Customer’s Switching Behavior towards Banking Service Providers in Hanoi
The research aims to investigate the impact levels of determinants on customer’s switching behavior towards banking service providers in Hanoi, Vietnam. We conducted a questionnaire consisting of 21 observation variables...
The Effect of Martial Law on Transfer Pricing in Ukraine
The purpose of this study was to describe the current state of tax control over transfer pricing in Ukraine. Analysing the effect of war and martial law on the tax system on the whole and transfer pricing as well, I woul...
Sharia and Corporate Governance of Islamic Banks
Seen as an essential element of economic development, corporate governance has been at the center of the debate since the 1990s. Its crucial interest for the good functioning of financial markets is strongly mentioned. O...
Determining the Phillips Curve and Okun's Law in Indonesia
This research aims to analyze the direct effect of inflation on growth, the direct effect of inflation on unemployment, the direct impact of economic growth on unemployment, and the indirect effect of inflation on unempl...