LPEM UI: The Increase In Non-Subsidized Fuel Prices In Early December Will Influence Year-End Inflation

Illustration (Photo: Doc. Antara)

The University of Indonesia's Institute for Economic and Community Research (LPEM UI) stated that the 2022 Christmas and 2023 new year holidays are celebrations with the highest level of freedom since Naru 2019-2020.

It is stated that this momentum is an opportunity for people who want to celebrate their year-end with their families.

LPEM UI researcher Chaikal Nuryakin and colleagues revealed that the year-end momentum trend is always colored by the increase in inflation due to increasing demand. Especially this year, inflation will be influenced by fuel oil prices (BBM).

"The increase in transportation costs, both land, sea, and air, is something to watch out for. The increase in non-subsidized fuel prices in early December will be one of the key factors in the increase in public travel costs, especially those who decide to travel using private vehicles," he said in a written statement, quoted on Tuesday, December 6.

According to Chaikal, pending seeds towards the end of the year can also increase the price of goods in the market.

"Towards the end of the year, we predict inflation rates in the range of 5.0 percent to 5.5 percent year on year (yoy) and inflation at approximately 1 percent month to month (mtm) in December 2022," he said.

Chaikal added that annual inflation in 2022 can be said to be above the Bank Indonesia (BI) inflation target and the government.

"The evaluation of targeted inflation and foreplay towards 2023 is important to maintain economic stability and community optimism, especially with the uncertainty that envelopes next year," he concluded.