INFLATION

What is Inflation?
As quoted from the official website of
Bank Indonesia (BI), inflation is defined
as an increase in the prices of goods and
services in general and continuously
within a certain period of time.
Cause of Inflation Inflation Impact
 Increased Production The Impact of inflation is
Costs usually felt by people
 High Demand with lower middle
 The Money Supply incomes. This is because
Increases when there is an
increases in prices, their
purchasing power will
decrease
 How to Deal with Inflation
 Saving Government Expenditure
 Raise Tax Rates
 Open Market Operations Policy
 Discounting Policy
 Setting Maximum Prices for Some Items