The Effect of Fluctuations in Food Commodity Prices in the Month of Ramadan on Inflation in Indonesia

Abstract

This study aims to investigate the effect of food commodity prices on inflation in the month of Ramadan in Indonesia in order to develop a strategy to control inflation in the month of Ramadan in Indonesia. This research method is a qualitative literature study. We found that ahead of Ramadan, the price of foodstuffs originating from livestock, such as beef, chicken and eggs, always increases, especially during Eid Al-Fitr and occurs for three consecutive years showing an increase every year. Fluctuations in the price of basic necessities often occur before, during and after national religious holidays such as Ramadan and Idul Fitri. This situation continues year after year due to the large number of requests. According to the law of demand, which states that when demand rises while supply is constrained, prices will rise, a growth in demands that cannot be satisfied by a restricted quantity of goods. Price swings before Eid al-Fitr are frequent occurrences that individuals can't seem to avoid. Consumers and producers have tended to confront more risks and uncertainties recently as a result of changes in food prices. Although it has a distinct pattern, the price of food items has also grown domestically. Quite fundamental changes have occurred since the last ten years, namely after the reform period.