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Standard theory of inflation is based on supply side and demand side theories. Both sides are about economic variables works which are simultaneously create the level of inflation in a region or district. All economies realize that all economic variables work not in an abstract space but in a real space in a physical space. Unfortunately very view studies and theories have been developed in the spatial impact. An important question is why the same monetary policy has different impact on different regions even though they have relatively same basic economic condition? This study aims at finding the question of how economic spatial have a significant role in inflation among districts in the province of East Java. By applying Spatial regression and Moran I to investigate if here is a spatial dependency among districts and also spatial interaction among them, it will identified if inflation rate among districts is also affected by spatial dimension. This study found that spatial dimension has a significant role in price stability in the region, but to choose the right spatial weight for the regression is crucial. Based on the result, the change in infrastructure has impact on transport cost and eventually on inflation rate. Policy maker have to analysis and decide properly which part of road or other spatial related facilities to be developed in order to have maximum impact to control inflation in the region.