The Effect of Minimum Wage on Consumer Price Index in Denpasar City

This study aims to analyze the effect of minimum wage on the consumer price index in Denpasar City. The minimum wage is an important factor in a region's economy and can have a significant impact on inflation rates and people's well-being. The consumer price index (CONSUMER PRICE INDEX) is an important indicator in measuring the level of inflation and changes in the prices of goods and services consumed by the public. Denpasar City was chosen as the focus of the study because it has had a dynamic economy and a significant inflation rate in recent years. The method used in this study is a simple linear regression analysis using secondary data from sources such as the Central Statistics Agency (BPS) and the Denpasar City Wage Council. The data used include the minimum wage, consumer price index, and other control variables such as economic growth, unemployment rate, and national inflation. The results of this study are expected to provide a better understanding of the relationship between minimum wage and the consumer price index in Denpasar City. If there is a significant relationship between these two variables, this study can provide valuable information for governments, employers, and workers in taking appropriate policies to maintain a balance between fair wages and price stability.