The article examines how government spending and monetary policies impact inflation in Indonesia from 1970 to 2017. The researchers found that both fiscal and monetary measures have a significant influence on the inflation rate. They also discovered that changes in output and exchange rates affect inflation. The study supports the idea that inflation can be caused by increased demand and imported goods. Additionally, unexpected events like inflation shocks and exchange rate fluctuations can also impact domestic prices. This shows that Indonesia's inflation is closely linked to global financial trends.