ECONOMIC FACTORS ON INFLATION

Abstract

Inflation is a process of increasing prices in general and continuously related to market mechanisms which can be caused by various factors, among others, increased public consumption, excess liquidity in the market that triggers consumption, or even speculation, including the consequences of the non-smooth distribution of goods. A country's economy would be healthy if its economic growth is stable and shows a positive direction. This is reflected in macroeconomic activities. One of the macroeconomic indicators to see the economic stability of a country is inflation. The purpose of this paper is to analyze economic factors on inflation. Qualitative research and data collection techniques in the form of literature studies and Library Research. The results of the study show that based on the results of the research and discussion that have been described previously, several conclusions can be drawn as follows The money supply and the BI Rate together affect the dependent variable, namely inflation, The money supply has a negative effect on inflation in Indonesia and BI Rate has a positive effect on inflation in Indonesia