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This study will discuss the transportation sub-group because the transportation sub- group is now the talk of the government's policy regarding changes in the price of fuel oil (BBM) and has an impact on the economy. The purpose of this research is to find out whether the impact of inflation and the consumer price index (CPI) on the transportation group has an effect on economic growth in Indonesia. The method used in this research is descriptive quantitative using Eviews 10 and testing is done with Augmented Dickey-Fuller Stationarity Test (ADF), Panel Data Analysis, and Classical Assumption Test, namely: Normality Test, Autocorrelation Test, Heteroscedasticity Test and Multicollinearity Test. The results of research on the impact of inflation on the transportation group stated that it had an insignificant positive effect on economic growth in Indonesia. Meanwhile, the consumer price index (CPI) in the transportation group has a significant positive effect on economic growth in Indonesia. So if inflation and the consumer price index (CPI) increase, then economic growth will also increase. The increase in inflation and the consumer price index (CPI) was influenced by the increase in subsidized fuel prices due to the government's price policy. The government must be able to prepare and distribute funds for fuel subsidies to help the affected communities, especially for the lower middle class households. And fuel subsidy funds must also be allocated to other sectors in order to provide direct benefits to the community, for example electricity subsidies, transportation costs subsidies, and others |
