Abstract
The purpose of this research is to prove that inflation in Indonesia is caused by the interest expense from loans, which is related to the perspective of Islamic Economics. Methodology This research was analyzed using simple linear regression and hypothesis testing "there is a positive and significant effect of interest rates on inflation in Indonesia". Findings The results of the regression analysis show that interest rates have an effect on inflation and the results of the hypothesis test of interest rates have a positive and significant effect on inflation, which means that if interest rates rise, inflation will also increase. Suggestions From an Islamic perspective, interest rates are usury, if they are carried out, they will destroy the economy of a country. This research is expected to prove that interest rates cause inflation in Indonesia, because interest is usury. It's time to switch to eliminating usury in economic activity.
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