THE IMPACT OF GLOBAL FOOD PRICE FLUCTUATIONS ON INDONESIAN INFLATION

Authors

  • Dini Anggraini North Sumatra State Islamic University , Indonesia
  • Ataina Zulfa Nasution North Sumatra State Islamic University , Indonesia
  • Devani Tarigan North Sumatra State Islamic University , Indonesia
  • Ahmad Affandi North Sumatra State Islamic University , Indonesia
  • Zohya Azzura North Sumatra State Islamic University , Indonesia

Abstract

study aims to analyze the impact of global food price fluctuations on inflation in Indonesia, highlighting the link between global price volatility and domestic price stability. The approach used is qualitative, using library research, through an in-depth analysis of various scientific journals, books, and recent economic reports. The results show that global food price fluctuations significantly impact Indonesian inflation, primarily through strategic import commodities such as wheat, soybeans, and vegetable oil. These findings underscore the importance of food diversification, strengtheningnational reserves, as well as adaptive monetary policy in maintaining domestic economic stability amidst global uncertainty..

References

Abbas, S.K., & Lan, H. (2020). Commodity price pass-through and inflation regimes. Energy Economics, 92, 104977.https://doi.org/10.1016/j.eneco.2020.104977

Bank for International Settlements. (2016). Inflation mechanisms, expectations and monetary policy in Indonesia. BIS Papers No. 89. Bank for International Settlements.https://www.bis.org/publ/bppdf/bispap89.pdf

Faharuddin, M., Prasetyo, A., & Wicaksono, B. (2019). Impact of food price increases on poverty in Indonesia. Journal of Economic Studies, 46(7), 1345–1362.https://doi.org/10.1108/JES-12-2018-0451

Farandy, M., Rahmawati, N., & Putri, D. (2022). Analyzing factors affecting Indonesian food price inflation. Journal of Development Economics Policy and, 8(2), 45–60.https://doi.org/10.1016/j.jdep.2022.02.003

Furceri, D., Loungani, P., Simon, J., & Wachter, S. M. (2016). Global food prices and domestic inflation: Some cross-country evidence. Oxford Economic Papers, 68(3), 665–687.https://doi.org/10.1093/oep/gpw016

Ismaya, A., & Anugrah, F. (2021). Determinants of food inflation: The case of Indonesia. Asian Economic Journal, 35(4), 377–395.https://doi.org/10.1111/asej.12254

Kusnadi, D., & Handayani, S. (2020). Food inflation and its implications for monetary policy in Indonesia. Indonesian Journal of Economics and Development, 20(2), 145–160.https://doi.org/10.21002/jepi.v20i2.1375

Rahmad, M., & Haryono, T. (2022). Effect of food commodity price fluctuations on inflation in East Java. Journal of Contemporary Social and Industrial Studies, 1(2), 32–47.https://doi.org/10.63230/jocsis.1.2.32

Shen, Y., Yu, X., & Liang, Y. (2024). Assessing the role of global food commodity prices in achieving the 2030 agenda for SDGs. iScience, 27(2), 108832.https://doi.org/10.1016/j.isci.2024.108832

Sukmana, R., & Yuliana, A. (2023). Inflation dynamics and monetary policy in emerging economies: The Indonesian experience. Economic Modelling, 120, 106223.https://doi.org/10.1016/j.econmod.2023.106223

Tadesse, G., Algieri, B., Kalkuhl, M., & von Braun, J. (2014). Drivers and triggers of international food price spikes and volatility. Food Policy, 47, 117–128.https://doi.org/10.1016/j.foodpol.2013.08.003

Theresia, A., Ikhsan, M., Kacaribu, FN, & Sumarto, S. (2025). Spillover effect of food producer price volatility in Indonesia. Economies, 13(9), 256.https://doi.org/10.3390/economies13090256

Warr, P. (2011). Food prices and poverty in Indonesia. Australian Journal of Agricultural and Resource Economics, 55(2), 241–258.https://doi.org/10.1111/j.1467-8489.2011.00537.x

World Bank. (2023). Indonesia economic prospects: Maintaining stability, fostering sustainability. Washington, DC: The World Bank.https://doi.org/10.1596/978-1-4648-1974-3

Downloads

Published

2025-11-26

How to Cite

Dini Anggraini, Nasution, A. Z., Devani Tarigan, Ahmad Affandi, & Zohya Azzura. (2025). THE IMPACT OF GLOBAL FOOD PRICE FLUCTUATIONS ON INDONESIAN INFLATION. International Journal Multidisciplines and The Development of Science, 3(3), 213–222. Retrieved from https://jurnal.asrypersadaquality.com/index.php/ijmds/article/view/581

Issue

Section

Articles