GLOBAL INFLATION AND ITS IMPACT ON THE PURCHASING POWER OF THE INDONESIAN PEOPLE
Keywords:
Global Inflation, Purchasing Power, SPSSAbstract
The phenomenon of global inflation in recent years has become a crucial economic issue, with implications for price stability and people's purchasing power in various countries, including Indonesia. Rising international energy, food, and commodity prices, exacerbated by geopolitical uncertainty and disruptions to the global supply chain, directly impact household consumption capacity. This study aims to evaluate the impact of global inflation on Indonesian people's purchasing power, both partially and simultaneously, and to determine the sectors most significantly impacted. The research approach used was quantitative, with a survey method involving 300 respondents spread across various provinces, using a stratified random sampling technique. Data were obtained through a structured questionnaire and analyzed using SPSS software through multiple linear regression tests, t-tests, and F-tests. The research findings indicate that global inflation has a negative and significant impact on people's purchasing power, with the basic necessities and transportation sectors being the most vulnerable to price increases. Simultaneously, the variables of global inflation, exchange rates, and international commodity prices contributed 68.7% to the decline in purchasing power. Thus, the consistent increase in global inflation has put pressure on the purchasing power of the Indonesian people, necessitating responsive fiscal and monetary policies, including targeted subsidies and strategic price controls, to maintain household economic stability amidst global uncertainty.
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