DAMPAK PENGELUARAN PEMERINTAH DAN PEMBAYARAN NONTUNAI SELAMA PANDEMI COVID-19 TERHADAP INFLASI DI INDONESIA

The inflation was recorded below 2% in 2020-2021 in line with weakening demand, but in 2022 the inflation increased to more than 5%. To overcome this problem, the government has implemented fiscal policies (regulating the spending) and accelerating non-cash payments. This study purpose is to examine the impact of government spending, non-cash payments, and public consumption on the inflation. A total of 99 panel data consisting of 33 provinces with a period of 3 years (2020-2022) were analyzed using the fixed effect model. The results show that government spending has a negative and significant effect on inflation, while public consumption has a positive and significant effect on inflation. Non-cash payments (debit cards and e-money) have a positive and significant effect on inflation, while credit cards have no significant effect on inflation. The author suggests detailing the variables of government spending to get more detailed results and combining qualitative research.