Assalamualaikum Wr Wb..

Good day everyone. In this opportunity we are from group

7 will explained to you about
HOW INFLATION CAN HAPPEN IN A COUNTRY?
SLIDE 1 (NANDA)
The presentation today will be opened by the definition of
Inflation. Inflation define as a sustained increase in the
general price level of goods and services in an economy
over a period of time.
SLIDE 2 (RATIH)
All the sources that you are looking for will surely say the
same thing about the definition of inflation. And to make
you better understand we will give a simple example of
how inflation was defined.
With Rp100. 000, on 3 different years you can no longer
buy goods with the same amount. In 1998 with
Rp100.000, you can buy many items at the supermarket
or mini market and make your shopping basket full.
But, 7 years later in 2005 with Rp100.000, you cant buy
many items at the supermarket or mini market and you
only make your shopping basket half full
And surprisingly, 8 years later in 2013 with Rp100.000,
you only can buy some of item in mini or supermarket.
SLIDE 3(UUN)

So HOW INFLATION CAN HAPPEN IN A COUNTRY ?

especially happen in Indonesia.
SLIDE 4(UUN)
There are two reasons why inflation can happen. The first
one because of:
1. DEMAND PULL INFLATION
Demand pull inflation occurs when demand for a good
or service increases so much that it outstrips supply
or simply you can says that it arise because of
demand more than supply.
SLIDE 5(UUN)
2. COST PUSH INFLATION
Cost push inflation only occurs when there is a
shortage of supply combined with enough demand to
allow the producer to raise prices.
You know why the producer raises the prices?
Its because the increase of the price of production
such as fuel, electrical, and also LPG and money
more.
On the next slide we will give you a video about simple
explanation of Demand Pull Inflation and Cost Push
Inflation.(RATIH/UUN/NANDA)
SLIDE 6 (RATIH)
Many people said Inflation is a Silent Killer of a country.
Its because inflation happen in many sector in a country.
There are kinds or types of Inflation that occurs in a
country:

 Inflation also occurs in foodstuffs such as rice, onion,

chili, and vegetables, that cause unstable prices and
continues to increase every year.
Inflation also hit foods. Because of the rise food
prices, the price of
food every year even every month continues to
increase.
SLIDE 7 (NANDA)
Inflation also happens to the price of resident and
gadget. You can ask your parent or your grandparents
how much they built or buy they house in the past.
SLIDE 8 (NANDA)
To prove if inflation really happens in Indonesia we will
give you the example. Actually inflation also happens to
egg. We can compare the price of eggs in the 4 period.
In 1997 the price is Rp2.000/kg, 8 years later the price
increase became Rp8.000/kg, and 8 years later again the
price increase became Rp14.000/kg and one year later
its mean in this year the price of egg became
Rp18.000/kg. It means that the Inflation of eggs is quiet
high.
SLIDE 9 (RATIH)
Inflation also hit food. Actually inflation also happens to
the yellow rice. Only compare the price in the 3 period of
school we already can find the inflation happen here. In
Elementary school the price of yellow rice is really cheap,
3 years later when you in Junior High School its increase

100 % and 3 years later the price increase again became

Rp6.000
SLIDE 10 (NANDA)
In 1991 the price of the land is Rp12.500/meter. But now,
23 years later in 2014 the price of the land is
Rp300.00/meter. Its proves if inflation definitely occur
every year in a country.
SLIDE 11 (UUN)
This is a wrong perception if save money will make you
rich. Save money will make you rich if there is no
inflation in a country, but unfortunately its impossible.
If you save your money Rp10.000 every year, it means in
10 years later your money will be Rp100.000. But in 10
years later, Rp100.000 in the future only enough to buy a
pack of padang rice
SLIDE 12 (RATIH)
The point of inflation is the fall in the value of money.
So, if someone asks you, "What is inflation?" the short
answer is, "An increase in the cost of things that are
necessary for humans to live . Or a decrease in the value
of money, so it takes more dollars, or yen, or pounds
sterling, or rupiah to buy the same goods and services it
did in the past."