Indonesia’s inflation recorded at 0.64 pct in July 2022 

The inflation contributor in July 2022 mainly came from the increase in the prices of red chilies, air transportation fares, shallots, household fuel, and cayenne pepper.

 

Jakarta (Indonesia Window) – The Statistics Indonesia (BPS) recorded inflation of 0.64 percent in July 2022 or the highest since October 2015, due to the increase in the Consumer Price Index (CPI) from 111.09 in June to 111.8 in July.

With the condition, the inflation for the July 2022 calendar year against December 2021 was noted at 3.85 percent and the year-on-year (yoy) inflation for July 2022 against July 2021 was recorded 4.94 percent, BPS Head Margo Yuwono told a press conference here Monday.

The inflation contributor in July 2022 mainly came from the increase in the prices of red chilies, air transportation fares, shallots, household fuel, and cayenne pepper, Margo added.

According to Margo, all the 90 CPI cities experienced inflation with the highest being in Kendari district, Southeast Sulawesi province, at 2.27 percent and the lowest in Pematang Siantar city, North Sumatra province, at 0.04 percent.

Inflation in Kendari was contributed by the increase in the air freight rate with a share of 0.75 percent, shortfin scad fish with a share of 0.19 percent and shallots with a share of 0.15 percent.

Margo explained that if inflation is seen by component, the biggest contribution comes from the price fluctuation of 0.25 for red chili, shallot and cayenne pepper.

He further said that the second contributor was the price component regulated by the government with a share of 0.21 percent due to the increase in air transportation rates, household fuel, filter cigarettes and electricity tariffs.

The rise in electricity rates for household customers with a power of 3,500 VA to 5,500 VA and R3 (high voltage power) with a power of 6,600 VA and above starting July 1 contributed to inflation of 0.01 percent.

While the third contributor is the core component with a share of 0.18 percent and the driving products are fresh fish, cars and house rental, he said.

The inflation record for July 2022 became a warning because it was already above the government’s target range, as it was reported by Bisnis.com on Monday.

In the Government Report on the Implementation of the State Revenue and Expenditure Budget (APBN) Semester I/2022, Minister of Finance Sri Mulyani Indrawati was reported to have raised the inflation outlook this year.

Reporting by Indonesia Window