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Now, when we talk about inflation, we usually look at the Consumer Price Index (CPI). The CPI measures the average change over time in the prices paid by urban consumers for a basket of consumer goods and services. Think of it as a snapshot of how much more you're paying for everything from groceries to transportation. In 2022, the CPI showed a clear upward trend, reflecting the rising costs faced by Indonesian households. This wasn't just about a few items getting more expensive; it was a widespread phenomenon affecting almost all sectors of the economy. The data tells a clear story: the cost of living was on the rise, and people had to adjust their budgets to cope. And that is what we're here to understand. This wasn't just a blip; it was a noticeable change in the economic environment.
