Inflation in Indonesia

It is obvious that our daily life cannot be separated from economic activity. It starts from trading, buying and selling and borrowing. But, there must be an effect in every activity. They can be positive or negative. One of the negative effect from economic activity is inflation. Inflation means an increasing price of goods in general and it continues due to the rising personal consumptions and resource scarcity. However, if the price increasing is only on one or two items, it still cannot be called inflation (Boediono, 1982:155). Almost all country have this problem, including Indonesia. There are three periods of inflation in Indonesia. They are orde lama, orde baru and reformasi. Each period has its own characteristics.