PENGARUH HARGA KOMODITAS LOKAL DAN SUBSIDI PEMERINTAH DAERAH TERHADAP INFLASI DI PROVINSI JAWA BARAT

Abstract

West Java is one of the provinces with the largest national production volume. According to BPS data in 2023, 87 percent of the mainland area of West Java is used as an agricultural business. However, the occurrence of food inflation is inevitable and has become one of the eleven largest annual inflation contributors in West Java. For this, it is necessary to know the specifics of the factors that affect inflation in order to determine the right efforts to maintain its stability. This study uses the Box Cox transphoresis method and inferential analysis with panel data from 2019 to 2023 from seven cities in West Java Province as well as one dependent variable (inflation) and six dependent variables (Rice Prices, Beef Prices, Purebred Chicken Meat Prices, Chicken Egg Prices, Cheap Market Operation Policies and Subsidized Shopping). The results of this study show that beef prices and subsidized spending have a significant effect on inflation. As well as the price of purebred chicken meat, chicken eggs and the Cheap Market Operation policy do not affect inflation. This means that not all local commodity prices affect inflation and the government needs to maintain subsidized spending. This study can be used as a basis for policy-making and as a reference for further research.