ANALYSIS OF THE RELATIONSHIP BETWEEN THE PRODUCER PRICE INDEX AND THE CONSUMER PRICE INDEX IN INDONESIA’S AGRICULTURAL SECTOR

Authors

  • Brenda Putri Br Sinuhaji Universitas Pembangunan Nasional "Veteran" Jawa Timur
  • Syarif Imam Hidayat Universitas Pembangunan Nasional "Veteran" Jawa Timur
  • Dita Atasa Universitas Pembangunan Nasional "Veteran" Jawa Timur

DOI:

https://doi.org/10.29103/jma.v5i1.28612

Abstract

Price index is an important tool for measuring price changes at both the producer and consumer levels through the Producer Price Index (PPI) and the Consumer Price Index (CPI). The relationship between these two indices remains a controversial issue, particularly in Indonesia’s agricultural sector, which is characterized by complex market structures, including small-scale enterprises, dependence on natural factors, and lengthy distribution chains. This study aims to analyze the short-term and long-term relationships between the PPI and CPI in Indonesia’s agricultural sector over the period 2013–2023. Secondary data were obtained from Bank Indonesia and the Central Statistics Agency (Badan Pusat Statistik) and analyzed using the Augmented Dickey-Fuller (ADF) stationarity test, Johansen cointegration test, and Vector Autoregression (VAR) estimation. The results indicate that there is no cointegration between the PPI and CPI, implying the absence of a long-term relationship. The VAR(1) estimation further shows that the PPI and CPI do not influence each other in the short run, except for the PPI’s influence on itself. These findings highlight the presence of asymmetric price transmission, where changes in producer prices are not always passed on to consumers.

Keywords: Producer Price Index, Consumer Price Index, Johansen Cointegration, Vector Autoregression, Agricultural Sector, Indonesia

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Published

2026-07-20

How to Cite

Br Sinuhaji, B. P., Hidayat, S. I., & Atasa, D. (2026). ANALYSIS OF THE RELATIONSHIP BETWEEN THE PRODUCER PRICE INDEX AND THE CONSUMER PRICE INDEX IN INDONESIA’S AGRICULTURAL SECTOR. Jurnal Mahasiswa Agribisnis, 5(1), 141–147. https://doi.org/10.29103/jma.v5i1.28612

Issue

Vol. 5 No. 1 (2026): July

Section

Articles

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Copyright (c) 2026 Brenda Putri Br Sinuhaji, Syarif Imam Hidayat, Dita Atasa

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