Inflation data clustering of some cities in Indonesia

Abstract

In this paper, it is presented how to cluster inflation data of cities in Indonesia by using k-means cluster method and fuzzy c-means method. The data that are used is limited to the monthly inflation data from 15 cities across Indonesia which have highest weight of donations and is supplemented with 5 cities used in the calculation of inflation in Indonesia. When they are applied into two clusters with k = 2 for k-means cluster method and c = 2, w = 1.25 for fuzzy c-means cluster method, Ambon, Manado and Jayapura tend to become one cluster (high inflation) meanwhile other cities tend to become members of other cluster (low inflation). However, if they are applied into two clusters with c=2, w=1.5, Surabaya, Medan, Makasar, Samarinda, Makasar, Manado, Ambon dan Jayapura tend to become one cluster (high inflation) meanwhile other cities tend to become members of other cluster (low inflation). Furthermore, when we use two clusters with k=3 for k-means cluster method and c=3, w = 1.25 for fuzzy c-means cluster method, Ambon tends to become member of first cluster (high inflation), Manado and Jayapura tend to become member of second cluster (moderate inflation), other cities tend to become members of third cluster (low inflation). If it is applied c=3, w = 1.5, Ambon, Manado and Jayapura tend to become member of first cluster (high inflation), Surabaya, Bandung, Medan, Makasar, Banyuwangi, Denpasar, Samarinda dan Mataram tend to become members of second cluster (moderate inflation), meanwhile other cities tend to become members of third cluster (low inflation). Similarly, interpretation can be made to the results of applying 5 clusters.