Desliana, Fitri Anggreani2021-09-302021-09-302021-02wahyu sari yenihttps://repository.unri.ac.id/handle/123456789/10235The Consumer Price Index (CPI) is one of the important indicators that used as basis for determining the rate of inflation. In this study, the data that used are Dumai City’s CPI from January 2016 until December 2019. The CPI consist of seven subgroups that affect inflation in Dumai City. The seven subgroups are Foodstuff; Processed Food, Baverage, Cigaretts, and Tobacco; Housing, Electricity, Water, and Gas; Clothing; Health; Education, Recreation, and Sports; Transportation, Communication, and Financial Services. These factors will be reduced using Principal Component Analysis to identify the main factor that most contribute in determining the inflation rate. This study shows that seven dimension of factors can be reduced into two main factors, they are Primary Needs Factor and Complementary Needs Factor with a total variant 91.996%.enConsumer price indexinflationprincipal component analysismatricesArticle