Indonesia’s inflation rate was recorded at 4.94 percent year-on-year in July 2022, indicating the government was able to keep conditions under control in the country.
Meanwhile, the country recorded core inflation at 2.85 percent, which also came in relatively low compared to several G20 countries, in particular.
According to the latest inflation data from the Organisation for Economic Cooperation and Development (OECD), as of June 2022, Indonesia’s inflation reached 4.4 percent yoy.
Meanwhile, inflation in South Korea, the United Kingdom, the United States, and the European Union was recorded at 6.1 percent, 8.2 percent, 9.1 percent, and 9.6 percent yoy, respectively.
Indonesia did admit the global food and energy crises have affected domestic inflation — especially since the inflation in the energy sector has continued to increase. However, just like Malaysia, the Jokowi’s government has been ramping up subsidies on various essential goods including petrol and cooking oil.
The government has increased the energy subsidy budget from Rp443 trillion (US$29.66 billion) to Rp520 trillion (US$34.8 billion) and has refused to raise the price of fuel, liquefied petroleum gas (LPG), and electricity tariffs in the midst of soaring global energy prices.
Meanwhile, food inflation has mostly been caused by disruptions in the domestic supply of basic commodities due to bad weather in a number of regions.
Statistics Indonesia (BPS) head Margo Yuwono informed that the inflation rate rose by 0.64 percent month-to-month (mtm) in July 2022, as the Consumer Price Index (CPI) climbed to 111.8 from 111.09 in June 2022.
The commodities whose rising prices contributed the most to inflation in July 2022 were red chili, air transportation services, shallots, fuel for households, and labuyo chili (Capsicum frutescens).
