Inflation Drops During Eid, Ministry Of Finance: Government Quality Anticipates Price Turmoil

Illustration (Photo: Doc. Ministry of Finance)

The Ministry of Finance (Kemenkeu) said that during the National Religious Holidays (HBKN) of Ramadan and Eid al-Fitr, the inflation rate could be controlled.

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Kacaribu, revealed that general inflation (Consumer Price Index/IHK) was recorded at 4.33 percent year on year (yoy) in April 2023. This figure is more sloping than March 2023 which reached 4.97 percent.

Last month's inflation was lower than inflation in HBKN Ramadan and Eid Al-Fitr 2022. The control of inflation was supported by the maintenance of food price movements and the decline in core and administrative price inflation," he said in a written statement, Wednesday, May 3.

According to the explanation, the volatile food price inflation (volatile food) fell sharply from March 2023 which reached 5.83 percent yoy to 3.74 percent in April 2023.

He claims that food price control measures are carried out through market operations policies, low-cost food titles, market stock monitoring and distributors, as well as distribution facilitation policies involving the central and regional governments along with food SOEs and food traders associations.

According to Febrio, the control of food inflation is also supported by the abundance of stock in line with the rice harvest and horticultural commodities throughout March and April.

"In the future, the government will continue to focus on maintaining food availability, especially the risk of El Nino's threat which will affect food productivity," he said.

Febrio added that the slowdown in inflation in general was also influenced by the decline in core group inflation and price regulated by the government (administered price).

He said, core inflation in April 2023 reached 2.83 percent yoy, slightly easing compared to March 2023 which was 2.94 percent.

"All expenditure groups have experienced a decline in inflation, except for clothing and footwear groups," he added.

Meanwhile, administrative price inflation also experienced a slowdown of 11.56 percent yoy in March and decreased in April to 10.32 percent yoy.

Sri Mulyani's subordinates conveyed that the transportation/transport policy during Eid al-Fitr 2023 experienced an increase in quality even though the Eid al-Fitr movement increased 45 percent higher than Eid al-Fitr 2022.

"The government continues to anticipate, including in regulation of transportation rates, preparation of availability of transportation modes, and traffic engineering in the 2023 homecoming flow," he said.

Febrio stated that the sloping inflation rate shows that the government's anticipatory steps in overcoming potential price fluctuations in the HBKN of Ramadan and Eid al-Fitr continue to show an increase in quality, especially in creating central and regional policy synergies.

"The government continues to make integrated efforts to intervene in price and supply as a measure to anticipate price fluctuations due to soaring demand. The national food aid distribution program also helps maintain people's purchasing power, especially the poor and vulnerable. Commitment to controlling inflation continues to be pursued to support inflation's achievement in accordance with the 2023 target," closed Febrio.