| The relationship between inflation and economic growth are related. If the inflation rate is high it can slow the economic growth, Likewise if the inflation rate is low and stable it can encourage the economic growth. High economic growth could boost high inflation rate through aggregate demand. This paper aims to analyse causality relationship between inflation and economic growth periode 2000-2011. In doing so, we use the quarterly time data from 2000:Q1 to 2011:Q3. This paper utilize Granger Causality test to see the relations between both variabel. Ordinary Least Square has been employes to see the relationship between inflation and economic growth, and other way around. This paper achieve a one-way causality where economic growth influence inflation negatively. |