Ministry Of Finance: Ramadan 2023 Inflation Is Properly Controlled

Illustration (Photo: Doc. Ministry of Finance)

The Ministry of Finance (Kemenkeu) stated that there was a significant decline in inflation in March 2023 to 4.97 percent year on year (yoy) from the previous 5.47 percent in February 2023.

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Kacaribu said this was the result of various food price control efforts ahead of Ramadan carried out by the government and proved quite effective in reducing food inflation.

"The period of Ramadan 2023, inflation can be well controlled," he said in a press statement on Tuesday, April 4.

Febrio explained that volatile food price inflation (volatile food) was able to be reduced from 7.62 percent to 5.83 percent, although on a monthly basis there was a slight increase ahead of Ramadan as demand increased.

"The price of rice is also expected to slope along with the entry of the main harvest period which began in early March," he said.

Febrio added that government-regulated price group inflation (administered price) was recorded at 11.56 percent, slowing down from February which reached 12.24 percent.

Hal ini dipengaruhi oleh penurunan tarif air PAM. Meskipun demikian, pemerintah juga mengantisipasi risiko kenaikan harga minyak global dalam beberapa hari terakhir akibat kebijakan OPEC+ yang berencana untuk menghasilnya, kata dia.

Then, the general slowdown in inflation was also driven by the slowing down of the core inflation component, which was 2.94 percent or lower than core inflation in February 3.09 percent.

Sri Mulyani's subordinate ensured that the government would continue to maintain price stability ahead of the National Religious Holidays (HBKN) of Ramadan and Eid.

It is stated that the central and regional governments will continue to monitor prices and food availability and carry out various intervention policies, including through market operations and low-cost food markets, as well as strengthening food stocks and smooth supply distribution.

Febrio said that the additional rice social assistance program, which began rolling at the end of March, is also expected to be able to control price pressure in the domestic market and maintain access to basic food for the community.

"Price stability during the HBKN period is an important key in maintaining food security and people's purchasing power," he concluded.