Sayonara Inflation, Ayem Adem Goods Price During Ramadan 2023

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA The surge in the price of goods during Ramadan and Eid al-Fitr this year is relatively not having a significant impact on the community.

In observations at the Bekasi traditional market less than a week before Lebaran, the increase in the price of curly red chilies is quite moderate, ranging from Rp5,000-Rp10,000/Kg. While beef moves around Rp20,000/Kg.

Previously, the price fluctuation of these two commodities had always been a scourge during Ramadan. This of course affects the rising inflation movement.

Investigate, in the 2023 period, the government is intensifying inflation control by cooperating with Bank Indonesia (BI) with local governments through the National Food Inflation Control Movement (GNPIP).

The editor noted that last March general inflation (Consumer Price Index/IHK) on a monthly basis was 0.18 percent month to month (mtm) lower than its historical pattern in the early Ramadan period.

The score made inflation on an annual basis down from 5.47 percent year on year (yoy) in February to 4.97 percent in March.

The decline in inflation occurred in all groups, namely core, volatile food, and administrative prices. Core inflation in March 2023 continued to slow down from 3.09 percent yoy to 2.94 percent influenced by inflation expectations and declining imported inflationary pressures.

This is also supported by adequate aggregate supplies in response to the increase in demand for goods and services.

Meanwhile, volatile food inflation fell from 7.62 percent yoy in February 2023 to 5.83 percent.

Just so you know, the Central Statistics Agency (BPS) in early April reported that the dominant price increase did not occur in food commodities but was more about increasing air transportation rates.

Furthermore, efforts to control inflation are not only through GNPIP. The government also rolled out social assistance programs (bansos) for basic necessities, such as rice, eggs, and chickens in March. This effort is intended to maintain people's purchasing power during Ramadan as well as to mitigate the increase in basic food prices.

To note, the core inflation target in 2023 is 3 percent plus minus 1 percent. This level can now be achieved as previously explained. As for general inflation/JCI, it is hoped that it can be achieved to the target of 3 percent plus minus 1 percent in the second semester of 2023.

In fact, BI sharpened the IHK inflation target from previously estimated in September 2023 to August 2023. For information, Bank Indonesia is a very interested institution with inflation movements because it is related to the amount of money in circulation (rupiah stability) and the determination of the benchmark interest rate (BI rate).