This study will discuss the transportation
sub-group because the transportation sub- group is now
the talk of the government's policy regarding changes in
the price of fuel oil (BBM) and has an impact on the
economy. The purpose of this research is to find out
whether the impact of inflation and the consumer price
index (CPI) on the transportation group has an effect
on economic growth in Indonesia. The method used in
this research is descriptive quantitative using Eviews 10
and testing is done with Augmented Dickey-Fuller
Stationarity Test (ADF), Panel Data Analysis, and
Classical Assumption Test, namely: Normality Test,
Autocorrelation Test, Heteroscedasticity Test and
Multicollinearity Test.
The results of research on the impact of inflation
on the transportation group stated that it had an
insignificant positive effect on economic growth in
Indonesia. Meanwhile, the consumer price index (CPI)
in the transportation group has a significant positive
effect on economic growth in Indonesia. So if inflation
and the consumer price index (CPI) increase, then
economic growth will also increase. The increase in
inflation and the consumer price index (CPI) was
influenced by the increase in subsidized fuel prices due
to the government's price policy. The government must
be able to prepare and distribute funds for fuel
subsidies to help the affected communities, especially
for the lower middle class households. And fuel subsidy
funds must also be allocated to other sectors in order to
provide direct benefits to the community, for example
electricity subsidies, transportation costs subsidies, and
others.
Keywords :
Inflation, Consumer Price Index (CPI), Economic Growth, Transportation Group.