BI Says Airline Ticket Prices Drive Inflation In Maluku

Illustration (Photo: Doc. Antara)

JAKARTA - The Maluku Province Bank Indonesia (BI) Representative Office stated that inflation in Maluku in July 2022 reached 1.68 percent, mostly influenced by the increase in air ticket prices.

"Air ticket prices have increased to 12.45 percent, including the data on five commodities contributing to Maluku's inflation," said Deputy Head of the BI Maluku Province Lukman Hakim, quoted by ANTARA, Wednesday, August 3.

The increase in air ticket prices was caused by several factors, including the high cost of Avtur, limited aircraft supply, and the implementation of the Pattimura Airport Airport Tax rate which is expected to further increase the price of airplane tickets.

In addition, he said, the 12 percent increase in cigarette excise rates by the central government caused a gradual increase in the price of white cigarettes in line with the pricing strategy set by distributors.

The high La Nina in the Maluku region is getting deeper, increasing the potential for bad weather.

The sea surface temperature in the South Asia Pacific region has decreased again to the level of -0.08 which indicates high rainfall that disrupts capture fisheries activities.

The five biggest contributors to Maluku's inflation are air transportation (mtm) 12.45 percent, cayenne pepper: 49.06 percent, red onion 31.95 percent, kale 36.83 percent, and white cigarettes: 4.31 percent.

"In addition, heavy rainfall has also disrupted the production of horticultural commodities. The bad weather that has occurred especially in the central and outer regions of Maluku is allegedly lowering production levels so that prices will rise," he said.

Meanwhile, the five biggest contributors to Maluku's deflation were (mtm) Beans -0.02 percent, selar fish -3.27 percent, rice -0.43 percent, garlic -5.16 percent, and wine -14.63 percent.

The Bank Indonesia Representative Office for Maluku Province recorded that on a monthly basis, the Maluku CPI in July 2022 recorded inflation of 1.68 percent (mtm), an increase compared to the previous month which recorded inflation of 0.11 percent (mtm).

On an annual basis, the Maluku CPI in July 2022 also increased. Maluku's annual CPI recorded inflation of 5.80 percent (yoy), higher than inflation in the previous month of 4.19 percent (yoy).

Meanwhile, the current year's CPI experienced inflation of 3.62 percent (ytd), higher than the previous month's achievement of 1.91 percent (ytd).

In addition, the Maluku CPI achievement in July 2022 was at a higher level than the national inflation which was recorded at 4.94 percent (yoy).

He said, in order to maintain inflation stability as well as efforts to improve the economy of Maluku Province during July 2022, the Maluku Province BI Representative Office together with the Maluku Province Regional Inflation Control Team (TPID) carried out activities including preparing an assessment of cooperation in basic commodities between Maluku and North Sulawesi, Central Sulawesi, Gorontalo, and South Sulawesi.

In order to follow up the activities of the Sulampua Regional Coordination Meeting for TPID in July 2022, the Maluku KPwBI coordinated with staple business actors on a mission to offer an inter-regional cooperation agreement (KAD) between Maluku and other provinces in Sulampua in order to fulfill basic commodities.

Monitoring the supply of basic commodities on a regular basis in order to ensure the availability of supply and the dynamics of the price level.

The availability of staple food supplies is monitored through a supply monitoring system and in coordination with the Moluccas Province Industry and Trade Agency.