The Government Is Alert For Energy Price Disrupts Even Though Inflation Is Sloping

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Ministry of Finance (Kemenkeu) stated that Indonesia continues to experience a sloping inflation trend and tends to be low compared to ASEAN countries and the G20 countries.

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Kacaribu, said the government would continue to use the APBN and fiscal instruments to manage inflation to be within moderate limits.

The inflation trend began to decline slowly, especially from adjacent prices originating from fuel prices. The government continues to anticipate the movement of energy commodity prices and the availability of fuel supplies to ensure the stabilization function of the state budget, namely as a shock absorber in the midst of global conditions that are still volatile," he said as quoted on Friday, February 3.

Febrio explained, seen by group, core inflation fell to 3.27 percent year on year (yoy) from 3.36 percent in December 2022.

It is stated that the performance of this inflation on the one hand comes from the decline in inflation in clothing needs, housing and housing services, as well as recreation.

On the other hand, he continued, there was an increase in inflation in the health sector as well as personal care and other services.

"The core inflation that is still maintained above 3 percent shows that people's purchasing power is still strong and optimism is welcoming 2023," said Febrio.

Sri Mulyani's subordinate said that volatile food inflation (volatile food) increased to 5.71 percent from December 2022 which was 5.61 percent.

The increase was driven by food prices that tended to be volatile as a result of seasonal factors and weather disturbances.

"To ensure food availability and maintain food price stability in the community, the Government has made various efforts through accelerating imports, anticipating price spikes due to the risk of weather disturbances, as well as preparing for Ramadan and Eid al-Fitr which have been carried out since the beginning of the year," said the Head of BKF.

As for the administered price group, inflation was recorded at 12.28 percent lower than in December 2022 which was 13.34 percent, with the driving factor being the declining air and gasoline transport rates.

Meanwhile, the price of cigarettes and PAM water rates has increased, which is influenced by an increase in excise rates and an increase in clean water services to the community.

As previously reported, IHK inflation in January 2023 was recorded at 5.28 percent on an annual basis. This figure is lower than December 2022 which was 5.51 percent.

"In the future, the government and the central bank will continue to strive to maintain inflation, considering that inflation control is one of the main issues of concern," he said.

"Efforts to control inflation continue to be pursued through various policies, including the stabilization of food prices, strengthening domestic supplies and reserves, anticipating price fluctuations due to the risk of weather disturbances, as well as preparing for the National Religious Holiday (HBKN)," closed Febrio.