BI Lhokseumawe: Transportation Services Contribute To Largest Inflation In July 2022

BANDA ACEH - Bank Indonesia (BI) Lhokseumawe, Aceh, stated that transportation services took part or contributed to the largest inflation in the area in July 2022.

Head of the Bank Indonesia Representative Office (KPw) Lhokseumawe Gunawan in Lhokseumawe, Sunday, said that based on the development of Lhokseumawe City's annual inflation in July 2022, it reached 5.8 percent, up 0.47 percent compared to June 2022.

"Inflation in Lhokseumawe City in July 2022 came from an increase in prices in the expenditure group, namely the transportation group with the largest inflation at 2.30 percent," Gunawan said as quoted by Antara, Sunday, August 7.

In addition to transportation services, Gunawan said, there were five commodities that experienced price increases and contributed to the largest inflation, namely red chilies 0.30 percent, air transportation 0.20 percent, green chilies 0.14 percent, red onions 0.10 percent, and rice 0.08 percent.

"The increase in prices for red chili and green chili commodities occurred due to crop failure due to erratic weather conditions and the epidemic. The price increase also occurred in air transportation because the soaring price of avtur caused price adjustments," said Gunawan.

Gunawan said that there were five commodities that experienced price declines and contributed to the largest deflation in Lhokseumawe City, including tuna -0.27 percent, cooking oil -0.16 percent, limes -0.04 percent, oranges -0.04 percent. and broiler eggs -0.04 percent.

"The price of tuna has continued the downward trend in prices since June due to abundant catches of fishermen. Meanwhile, the decline in cooking oil prices is due to the availability of stocks that have begun to be resolved and the decline in world CPO prices," said Gunawan.

On the other hand, said Gunawan, the increase in the number of fishermen's catches influenced by weather factors also contributed to the direction of inflation in August 2022.

Meanwhile, the increase in air transportation prices is predicted to continue to be a factor driving the risk of rising inflation in line with the increase in air transportation fares due to the increase in aircraft fuel prices and persistently high levels of demand.

"The risk of inflationary pressure in the third quarter of this year is predicted to be influenced by the increase in the prices of a number of global commodities, which will affect the prices of a number of goods and services in the country," said Gunawan.

Gunawan said the easing of the COVID-19 policy, which was accompanied by the reopening of a number of tourist destinations and international flight routes, was also expected to be a factor influencing inflation.

"We continue to coordinate with local governments to achieve low and stable inflation. Inflation control is carried out by maintaining the availability of goods, affordability of prices, smooth distribution and effective communication," said Gunawan.