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

English

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.