Bank Indonesia Predicts Inflation Achieving 0.05 Percent In October 2022

Executive Director of the Head of the BI Communication Department Erwin Haryono. (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) estimates inflation in October 2022 to reach 0.05 percent compared to the previous month (month-to-month/mtm), with the increase in fuel oil prices (BBM) still being the main contributor to inflation. The Executive Director of the Head of the BI Communication Department Erwin Haryono in his official statement, quoted from Antara Saturday, October 15, said the estimate came from the Price Monitoring Survey (SPH) in the second week of October 2022. The main commodities that contributed to inflation in October 2022 in the second week were gasoline at 0.05 percent (mtm) and city transportation at 0.04 percent (mtm). Then, there are also inter-city transportation, filter kretek cigarettes, raw tofu, tempeh, and rice, each of which accounts for inflation of 0.01 percent (mtm). Meanwhile, commodities that experienced deflation in the second week of October were broiler eggs with a deflation of 0.09 percent (mtm), red chilies of 0.08 percent (mtm), and broiler meat of 0.03 percent (mtm). In addition, cayenne pepper is also a contributor to deflation with a large amount of 0.02 percent (mtm), as well as tomatoes and cooking oil of 0.01 percent (mtm) each. BI will continue to strengthen coordination with the government and relevant authorities and continue to optimize policy mix strategies to maintain macroeconomic and financial system stability in order to support further economic recovery. Previously, the government raised the price of Pertalite from Rp7,650 per liter to Rp10,000 per liter, solar subsidies from Rp5,150 per liter to Rp6,800 per liter, Pertamax nonsubsidized increased from Rp12,500 to Rp14,500 per liter valid starting September 3, 2022 at 14.30 WIB.