Head Of BKF Febrio Kacaribu: November Inflation Lower Than Estimated, Evidence Of Continuous Stability

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - The Ministry of Finance (Kemenkeu) positively welcomes the decline in the inflation rate to 5.42 percent year on year (yoy) in November 2022. According to the Head of the Fiscal Policy Agency (BKF) Febrio Kacaribu, the score shows domestic price stability which can still be maintained amidst high global inflationary pressures.

November inflation is lower than the predictions we calculate within the Ministry of Finance. This is a positive result of the inflation control policy mix, especially the food inflation component," he said in a written statement quoted on Friday, December 2.

Febrio explained that this success was achieved through coordination between relevant authorities in an effort to maintain people's purchasing power which needs to be strengthened to support economic recovery. He said, core inflation, which is the largest contributor, is still moving stable at 3.3 percent.

This figure reflects the still strong purchasing power of the people amid the pressure of rising prices. This stable trend occurs in several spending groups, such as clothing, housing, household appliances, information and communication, which also indicates stable service inflation," said Febrio.

Sri Mulyani's subordinate also said that the volatile food inflation (volatile food) decreased considerably to 5.7 percent from the previous 7.2 percent in October. This decline was supported by deflation in the price of various chilies. On the other hand, rice prices continue the upward trend even though the increase is starting to slope.

"In response to the trend of rising rice prices, the government through Bulog has supplied more rice in the market amid stock constraints due to declining national rice production. National stock strengthening continues to be carried out through the coordination of the Central Inflation Control Team (TPIP) - Regional Inflation Control Team (TPID), namely by collecting production from central areas," he explained.

In addition to rice, he continued, there was an increase in the price of tofu and tempeh in line with the increase in global soybean prices and the depletion of domestic stocks. Therefore, the government has implemented soybean imports to maintain the stability of domestic supply.

"The government continues to maintain food price stability, especially ahead of Christmas and New Year's (nataru) moments to ensure inflation is more under control," he added.

Furthermore, price inflation is regulated by the government (administered price) to experience a minor decline to 13 percent from the previous 13.2 percent driven by the normalization of air transportation rates. In the future, the government is said to continue to strive to maintain people's purchasing power, by optimizing the allocation of the APBN and APBD.

The distribution of mandatory social protection and unexpected spending (BTT) continues to be accelerated to support controlled regional inflation. The central and local governments continue to monitor prices and food stocks, as well as the availability of flight fleets in preparing Christmas and New Year's moments in anticipation of inflationary pressures towards the end of the year," closed Febrio.