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Unequal Impact of Price Changes in Indonesia

Author

Listed:
  • Rulyusa Pratikto
  • Mohamad Ikhsan
  • B. Raksaka Mahi

    (Business Administration Department, Parahyangan Catholic University. Faculty of Economics and Business, Universitas Indonesia)

Abstract

The main idea of this study is to determine the impact of relative inflation on poverty incidents and to investigate whether inflation inequality has occurred in Indonesia. Interesting results were found at regional level. Firstly, Jakarta had different poverty response with respect to price increases. Processed food and transportation inflation were more imperative for the poor in Jakarta. Secondly, the poor in province with low poverty figures were more prone to inflation. In general, the results show that food inflation has the major adverse impact on the poor. Moreover, we found that inflation in Indonesia has not been pro-poor.

Suggested Citation

  • Rulyusa Pratikto & Mohamad Ikhsan & B. Raksaka Mahi, 2015. "Unequal Impact of Price Changes in Indonesia," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 61, pages 180-195, December.
    • Handle: RePEc:lpe:efijnl:201511
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    References listed on IDEAS

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    More about this item

    Keywords

    Poverty; Inflation; Price Elasticity of Poverty; Pro-Poor Price Index; Price Index for The Poor;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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