The Increase In Food Prices Is A Challenge For The 2024 Inflation Target

Food (photo: Antara)

JAKARTA - Deputy for Macroeconomic and Financial Coordination of the Coordinating Ministry for Economic Affairs Ferry Irawan said that the inflation target in 2024 of 2.5 percent plus minus 1 percent has a number of challenges, namely inflation of food prices or volatile food.

"Maybe the challenge is in volatile food, so from our target we hope it can be below 5 percent, until February 2024 it will be 8.47 percent," said Ferry at the East Kalimantan GNPIP event, Wednesday, March 27, 2024.

Ferry explained that inflation in February 2024 was recorded at 2.75 percent (yoy). In addition, core inflation also fell to 1.8 percent, amid rising volatile food inflation.

"We have seen that since July 2023 February 2024 the volatile food component has continued to increase," he said.

Ferry further said that volatile food inflation had also experienced a very high spike in August 2023 of 8.39 percent.

According to Ferry, with the synergy from various parties such as the central inflation control team (TPIP) and the regional inflation control team (TPID) through the National Food Inflation Control Movement (GNPIP) can control volatile food inflation at 1.2 percent in June 2023.

Ferry said that climate factors are one of the factors that must be watched out for in the archipelago will have an impact on the surge in volatile food.

"The increase in volatile food prices, one of which is El-Nino, is also a note in the second semester of 2024 after the first semester of 2024 El-Nino subsided, BMKG reminded La-Nina anticipation," he concluded.