| dc.description.abstract | Inflation is one of the important factors in determining the policy direction of the government and the Central Bank in the field of monetary and always be monitored movement. Since 2000, Central Bank of Indonesia has set a target inflation rate to be achieved using the Consumer Price Index (CPI). Inflation can be controlled by monetary policy commonly known as core inflation. The method used is VAR/VECM. The data used are monthly time series data January 2005 until December 2012. Real GDP and imports variables significant negative effect on core inflation, while the price of crude oil and exchange rate have a significant positive effect on core inflation, so that changes in Real GDP, imports, oil and the exchange rate will affect the change in core inflation. | en |
