The Influence of Minimum Wage, GDP Regional and Infrastructure Toward Inflation

Abstract

Inflation regulation policies that are more national in nature so that they pay less attention to the causes of inflation in each region, regional inflation control needs to be carried out partially and focus on certain commodity groups because the commodities contributing to regional inflation in each region are different. The results of the partial test show that variable LNUMP (Minimum Wage) and LNPDRB (GDP Regional) has proven to significantly influence the inflation, also variable LNTJ (Infrastructure) does not significantly affect the inflation variable partially (Y). The test results show that Adj R2 is 0.216897 which means that independent variables together have a magnitude of 21% influence on the dependent variable, or variables Minimum Wage (X1), Gross Regional Domestic Product (X2) and Infrastructure (X3) have a 21% effect on the elasticity of changes in inflation (Y)