New Fuel And VAT Rise, March Inflation Reaches 2.64 Percent: Highest Record Since April 2020

Illustration (Photo: Doc. Antara)

JAKARTA - The Central Statistics Agency (BPS) reported that in March 2022 there had been inflation of 2.64 percent year on year (yoy) or compared to March 2021.

Head of BPS Margo Yuwono said that on a month-to-month (mtm) basis, inflation in March 2022 was recorded at 0.66 percent, a significant jump from February 2022 with deflation of minus 0.02 percent.

Meanwhile, on a calendar year basis or from January to March 2022, the inflation rate is 1.20 percent.

"Inflation of 2.64 percent was the highest figure since April 2020 at which time there was an annual inflation of 2.67 percent," he said when holding an online press conference on Friday, April 1.

According to Margo, the main factors influencing last month's inflation were red chili, household fuel, gold, jewelry and cooking oil.

"The highest inflation occurred in Merauke at 1.86 percent and the lowest occurred in Kupang at 0.09 percent," he said.

Meanwhile, the highest deflation occurred in Tual at 0.27 percent and the lowest deflation occurred in Kendari at 0.07 percent.

For information, rising inflation in March 2022 cannot be separated from the upward trend in food prices since the beginning of this year.

It is estimated that the inflation rate will increase further with the increase in the price of Pertamax fuel oil (BBM) and an increase in the rate of Value Added Tax (VAT) levy to 11 percent which will take effect on April 1, 2022.

Not to mention the seasonal factor of Ramadan, which also falls this month, is believed to further strengthen the inflation rate at the beginning of the second quarter of 2022.