ANALYSIS OF DETERMINANTS OF FOOD INFLATION IN ASEAN COUNTRIES: A PVAR MODEL APPROACH

Abstract

Purpose: This research aims to analyze the impact of macroeconomic factors, namely the money supply, exchange rate, economic growth, food supply, interest rates, imports, exports, and wheat prices on food inflation. Theoretical reference: The data used in this study are secondary data obtained from the World Bank's website, covering the years 2002-2021. Method: The methods employed for data analysis include Panel Vector Autoregression (PVAR) and Panel Vector Error Correction Model (PVECM). Results and Conclusion: The results and conclusions The research indicate that economic factors such as the money supply, exchange rate, interest rates, imports, and wheat prices can influence the level of food inflation, but their effects may vary in the long run and short run. Implications of research: Implications of research availability of food supply and economic growth and can play a role in controlling food inflation. value: The novelty of this study is that economic factors can affect the inflation rate and affect the long-term and short-term and can control food inflation.