Inflation Skyrockets, The Government Compares The Condition Of Indonesia To Other Less Fortunate Countries

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - The government through the Ministry of Finance (Kemenkeu) claims that the inflation rate in June at the level of 4.35 percent was maintained even though it was higher than May's 3.55 percent.

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Kacaribu, said that compared to many countries in the world, Indonesia's inflation is still relatively moderate.

According to him, the inflation rate in the US and the European Union continued to record new records in the last 40 years, reaching 8.6 percent and 8.8 percent, respectively.

"It is also the case in a number of developing countries, such as Argentina and Turkey, with inflation rates reaching 60.7 percent and 73.5 percent, respectively," he said in an official statement quoted on Monday, July 4.

Febrio added that the State Budget (APBN) instrument was considered successful in reducing high global inflationary pressures, so that people's purchasing power and the momentum of national economic recovery could still be maintained.

"The government will continue to monitor and mitigate various factors that will affect national inflation, both from external and domestic sources," he said.

Furthermore, inflation in June increased, mainly due to a significant increase in volatile food prices reaching 10.07 percent year on year (yoy) from 6.05 percent in May.

Meanwhile, food commodities that increased include red chilies, cayenne peppers, and shallots due to high rainfall in the central areas, causing crop failure and disruption of distribution.

On the other hand, cooking oil prices began to fall as crude palm oil (CPO) prices fell.

He said, it is necessary to continue to watch out for developments in food prices due to weather risks and global price pressures due to export restrictions in several food-producing countries.

"Food is very important for the community, so the government will continue to anticipate and mitigate the risk of rising prices for volatile food groups through various policies to ensure adequate supply and affordability of food prices for the community," said Febrio.

For information, the government is aiming for inflation at the level of 3 percent plus-minus 1 percent for the whole year.

The June 2022 book, which was 4.35 percent, made the target more than what was set.