Abstract. This change in the structure of the agriculture-based economy towards industry has resulted in many benefits to be gained from this change. The existence of regional superiority can indicate added value and high productivity due to the built competitiveness. This is related to the industrial sector which has a close relationship with the economic development of a country because the progress of the manufacturing industry sector is one indicator of a country's economic success. The manufacturing industry is an economic driving tool for a country in its efforts towards a better and more stable economy. The development of a strategic industry because it has great potential to develop in the future. Which is able to make industrial clusters a driver of Indonesia's economic growth

Regional development is the driving force for national development, which makes regional governments the planners to carry out various kinds of economic transformation for the welfare of the existing society. Broadly speaking, the components that must be discussed in the regional macroeconomic analysis concern economic production and income, growth, unemployment, inflation, employment, external trade relations, financial institutions, regional finance, and poverty or social welfare. Regional macroeconomic analysis can at least show the face of the regional economic structure where this will determine the sustainability of the economy in accordance with development goals. The economic growth of a region, especially the City of Blitar, which of course comes from the results of regional taxes, regional levies, management of regional assets, and other legal regional revenues, which aims to provide flexibility to the regions to seek funding in the implementation of regional autonomy as a manifestation of the principle of decentralization and to increase PAD and support government activities and national development, a budget from the regional government is needed, one of which is from the regional tax sector. In one course experiencing economic stability and problems of economic growth. One of the main problems or drivers of economic instability that can disrupt economic growth is the occurrence of general and continuous price increases or better known as inflation.