Pengelompokan Kota-Kota di Indonesia Berdasarkan Indeks Harga Konsumen (IHK) Tahun 2015 dengan Metode Ward

Abstract

Inflation rate reveals changing of presentation regarding weighted average price level for goods and services in economy. An index that counts changed price average per period, from a consumed good and service group by people/households in period of time is Consumer Price Index (CPI). The purpose of this research are to clustering several cities in Indonesia based on Consumer Price Index and to determine characteristics for every formed Cluster. The used analysis method is hierarchical Cluster analysis with Ward method. Ward method used to minimize variations between objects that exist within the Cluster and to maximize variations with existing objects in the other Cluster. Similarity measure used is the Squared Euclidean distance. The results show that the clustering of the 82 cities which became the object of research is formed into two Clusters. The first Cluster was 67 cities, in this Cluster had variable characteristics having inflation rate based on Consumer Price Index’s average that was lower and the second Cluster was 15 cities, in this Cluster had variable characteristics having inflation rate based on Consumer Price Index’s average that was higher.