bit-Tech
Vol. 7 No. 3 (2025): bit-Tech

Forecasting the Inflation Rate in Lampung Province Using the ARIMA Method

Safitri, Ira (Unknown)
Iwari, A Rafi Paringgom (Unknown)



Article Info

Publish Date
25 Apr 2025

Abstract

Inflation is one of the key indicators that reflects the economic stability of a region. Inflation instability can directly impact the purchasing power of the population, increase poverty rates, and create imbalances in macroeconomic policies. In Lampung Province, inflation fluctuations have become a significant issue requiring attention, particularly in the context of regional economic planning and policy-making. This study forecasts the inflation rate using the Autoregressive Integrated Moving Average (ARIMA) method, which is known to be effective in analyzing time series data and providing accurate short-term estimates. The data used comprises monthly inflation rates from 2006 to 2023, obtained from the Central Bureau of Statistics (BPS) of Lampung Province. Five ARIMA model configurations were tested: ARIMA(3,1,2), ARIMA(3,1,1), ARIMA(2,1,1), ARIMA(1,1,1), and ARIMA(5,1,1). Based on the evaluation of the Akaike Information Criterion (AIC) and Mean Absolute Percentage Error (MAPE), the ARIMA(1,1,1) model was identified as the best-performing model, with the lowest AIC value and a MAPE of 0.57. The model also passed diagnostic tests, including residual normality and white noise assessment using the Ljung-Box test. The forecasting results indicate a gradual upward trend in inflation, with predicted rates of 0.23% in January 2024, 0.29% in February 2024, and 0.30% in March 2024. These findings provide early indications that inflation in Lampung Province tends to increase in the short term, and can serve as a basis for formulating more targeted regional inflation control policies.

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Journal Info

Abbrev

bt

Publisher

Subject

Computer Science & IT

Description

The bit-Tech journal was developed with the aim of accommodating the scientific work of Lecturers and Students, both the results of scientific papers and research in the form of literature study results. It is hoped that this journal will increase the knowledge and exchange of scientific ...