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Indonesia: Fuel Price-Driven Inflation Only Lasts 1 Month, Finance Ministry Deputy Claims
TEMPO.CO, Jakarta – Deputy Minister of Finance Suahasil Nazara said Indonesia experienced an upward trend in inflation in September due to the increase in fuel prices announced by the government on September 3.
However, he said, the upward trend in inflation will only occur this month after deflation in August. Because of this Suahasil is optimistic that in the following month of October 2022, inflation will fall again on a monthly basis.
“Inflation will rise in September, we hope that later on in a month-to-month it will start to decline in October, then in November it will return to its normal,” Monoarfa wrote in a written statement, Monday, 12 September.
Based on the Bank Indonesia Price Monitoring Survey in the 2nd week of September, inflation this month is expected to reach 0.77 percent on a monthly basis (mtm). This figure is up from the conditions in August, which was actually 0.21 percent deflation.
According to the BI survey, the main commodities contributing to inflation in September until the second week were gasoline (0.66 percent mtm), chicken eggs (0.03 percent), rice and transportation fares within the city (0.02 percent), as well as inter-city transportation fares. city, filter kretek cigarettes, and household fuel (BBRT) each with 0.01 percent.
Suahasil said that the potential inflation trend in September will be higher than July inflation of 0.64 percent but will see a fall again in the following months, which will not cause Indonesia’s economic growth to be depressed until the end of 2022.
He believes that Indonesia’s economic growth will not be affected by inflation and will continue to grow in the range of 5.1 percent to 5.4 percent.
“The estimated poverty rate will decrease by around 0.3 percentage points even though fuel price increases. How so? Because we provide social support that can increase purchasing power,” he believes.
ARRIJAL RACHMAN
Source: https://en.tempo.co/read/1633577/fuel-price-driven-inflation-only-lasts-1-month-finance-ministry-deputy-claims