The Influence of Inflation on Income, Inflation Cost, Consumption Behavior and Preventive Measures and Policies in Dili, Timor-Leste: A Case Study of Permanent Civil Servants

Inflation is a critical economic phenomenon that can have significant effect on permanent civil servants’ income and consumption. The objectives of this study are to: 1) test the effect of inflation on income; 2) test the effect of inflation on inflation cost; 3) test the effect of inflation on consumption behavior and 4) to the effect of inflation on preventive measure and policy in Dili, Timor-Leste that focused on permanent civil servants. We distributed 395 questionnaires to the permanent civil servants all around Dili specially whom worked at the ministries but at the end we only obtained 345 (87.34%) questionnaires from our respondents and 50 (12.66%) questionnaires are not returned, and interview were used to collect data. SMART-PLS 4.0 was used to test hypothesis. The findings revealed that inflation had significant effect on income, inflation cost and consumption behavior while there is no significant effect on preventive measure and policy.