Trade Minister Zulhas: Prices Of Basic Stable Materials Make October Inflation Controlled

Minister of Trade Zulkifli Hasan. (Photo: Doc. ANTARA)

JAKARTA - Minister of Trade (Mendag) Zulkifli Hasan revealed that stable prices of basic goods are an important factor in controlling the inflation rate.

Zulkifli said, this was proven that the inflation rate in October 2022 was under control because the prices of basic commodities in the country were stable, despite the weakening of the world economy which was followed by an increase in food prices.

Zulhas, as Zulkifli Hasan is familiarly called, emphasized that the Ministry of Trade continues to be committed to maintaining national food price stability so as to make a positive contribution to the national economy.

"Amid the weakening world economy followed by rising food and energy prices, global inflationary pressures, and domestic price adjustments due to rising fuel oil prices (BBM), domestic bapok prices during October 2022 are actually relatively under control. This has a significant impact on the decline in national inflation. In fact, volatile food groups are experiencing deflation," said Zulhas, in an official statement, Thursday, November 3.

Nationally, there was a deflation of 0.11 percent (mtm) in October 2022. Thus, cumulatively there was inflation of 4.73 percent (ytd) and annual inflation of 5.71 percent (yoy).

Zulhas said, this figure was down compared to the previous month with the main contribution contributed by the decline in the price of basic goods.

"The volatile food group (volatile food) in October 2022 experienced a deflation of 1.62 percent with a deflation of 0.27 percent. This is due to a decrease in the price of several basic commodities such as cooking oil, chilies, and chicken eggs," he said.

From the monitoring of the Ministry of Trade, continued Zulhas, chili prices fell more than 20 percent, chicken eggs fell 8.9 percent, and packaged cooking oil fell 5.2 percent when compared to when the fuel was announced.

Food ingredients that dominantly contributed to deflation in October 2022 were red chilies by minus 0.13 percent, broiler eggs by minus 0.06 percent, chicken meat minus 0.03, cayenne pepper by minus 0.03 percent, cooking oil by minus 0.02 percent, and tomatoes, shallots, and green chilies by minus 0.01 percent, respectively.

Meanwhile, the foodstuffs that contributed to inflation were 0.03 percent rice and 0.01 percent tempeh.

"The two commodities currently under government control are rice and soybeans. During October 2022, rice prices increased by more than 1 percent with an inflationary contribution of 0.03 percent. Meanwhile, soybeans experienced an increase in prices of more than 3 percent, thus encouraging an increase in tempeh and tofu prices," he said.

To maintain price stability for basic goods, the Ministry of Trade has taken a number of anticipatory and responsive steps.

One of them is collaborating with Bulog in providing food security through the Supply Availability and Price Stabilization (KPSH) program as well as food producer assistance for soybeans and feed corn.

In addition, the Ministry of Trade also continues to improve logistics and distribution efficiency with the Maritime Movement, Sea Toll Road, and Air Bridge programs. This policy is proven to help people in disadvantaged, remote, outermost, and border areas (3TP) to get bapok at affordable prices.

As an early warning system, the Ministry of Trade regularly continues to monitor price developments at 537 market points in 411 regencies/cities throughout Indonesia.

"The global situation full of turbulence is expected to still have an impact on the development of a number of commodity prices and food inflation. For this reason, the Ministry of Trade continues to anticipate to mitigate the impact, especially the supply and price of domestic food commodities," he explained.

Zulhas also emphasized that the Ministry of Trade is also actively coordinating with relevant ministries, both central and local governments, business actors, associations, and other stakeholders in maintaining smooth distribution and price stability so that inflation remains under control.