Abstract

Abstract: This research is a descriptive and explanative research on the effect of imports and interest rates on inflation. This study tries to understand the factors that influence inflation in ASEAN countries for the 2006-2019 period. The results show that: 1) Imports have a significant effect on inflation, this is evidenced by sig 0.0001 <0.05. 2) Interest rates have a significant effect on inflation, this is evidenced by sig 0.0001<0.05 and Fcount of 15.43226 with a determinant coefficient (R2) of 0.573003. This means that 57.3% of the impact is determined as the contribution of the independent variables (imports and interest rates) jointly to the dependent variable (inflation). While the rest (42.7%) is the influence of external variables not examined in this study.

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