Inflation Influence on Household Consumption in South Sumatra

Abstract

-This study discusses the effects of inflation on household consumption in 17 districts / cities in South Sumatra province in a vulnerable period of 2016-2018. Secondary data were obtained from published data and the Bank of South Sumatra province of Indonesia. Analysis of data using panel data regression with the help of an application program E-views 8.0 regression method selected Random Effect Model. The results of this study indicate that the variable inflation and a significant negative effect on household consumption in South Sumatra. Determinant coefficient value indicates that the proportion of variable inflation variables influence household consumption amounted to 26.38 percent.