<![CDATA[The Consumer Price Index (CPI) is used as the basis for calculating regional inflation rates. The balance of the CPI variable by Expenditure Group (CPI-EG) needs to be considered so that it does not have a major impact on the inflation rate. The purpose of this study is to determine the CPI-EG variable that affects the inflation rate in Lampung Province using the factor analysis method through the extraction technique of Principal Component Analysis. Factor analysis aims to reduce the CPI-EG variable into a factor with a smaller number. Based on the result of factor analysis there are 3 CPI-EG variables that were reduced because they did not meet the feasibility test and 8 CPI-EG variables that could be analyzed further. These variables form 1 factor which is named the Community Supporting Needs Factor. These factors can explain 79,304% of the total variance. Of the 8 CPI-EG variables, the Health Variable is the most dominant effect on the inflation rate in Lampung Province with a strong correlation of 0,980. This inflation rate is due to public health needs due to the increase in Covid-19 cases in Lampung Province in 2020.]]>
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