DO THE CHANGES IN OIL PRICES AFFECT FOOD PRICE? CASE STUDY IN INDONESIA
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Date
2018-07
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Publisher
BPTP Balitbangtan Riau
Abstract
This paper aims to find out the correlation between a changed of fuel price to food inflation in Indonesia. This paper also try to analyse all kinds of oil fuel and try to comparing the case in 5 difference provinces in Indonesia. This study uses time series and panel data. Time series data are used to the descriptive analysis of inflation rate development in Indonesia. Furthermore, the panel data are used to analyse by province in Indonesia. Whereas, the number time series (t) is 34 years in the period 1979-2012 and the number of panel data (t) is 3 years in the period 2013 – 2015. This study are used secondary data related to oil fuel price and inflation rate in Indonesia. The analysis in this study deploys descriptive analysis and Ordinary Least Square (OLS) method with fixed effect estimation. The result showed The effect of gasoline and diesel price change significantly correlate to inflation in Indonesia. It can be seen from R2 0.88, means 88 % fluctuation in inflation rate are determined by oil-fuel price. However, the model gives the strange result.
Keyword: rice, sectoral system of innovation
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Research Subject Categories::J Handling, transport, storage, and protection of agricultural products/ Penanganan, trasnpor, penyimpanan dan perlindungan hasil pertanian