JAKARTA - The government through the Ministry of Finance (Kemenkeu) stated that the decline in inflation in October 2022 to 5.71 percent year on year (yoy) is a reflection of the increasingly controlled rate of price growth in the country.
Head of the Fiscal Policy Agency (BKF) Febrio Kacaribu said last month's inflation book was lower than September 2022 which amounted to 5.95 percent.
The price of horticultural food is still continuing its downward trend amid rising rice prices. Meanwhile, the impact of fuel increases continues to shrink," he said in a press statement today, Wednesday, November 2.
Febrio explained that volatile food inflation recorded a slowdown to 7.2 percent from the previous September which reached 9.02 percent. Meanwhile, monthly (month to month/mtm), volatile food inflation, experienced a deflation of 1.49 percent.
Sri Mulyani's subordinate identified that the decline occurred due to the abundance of horticultural food stocks to encourage price reduction, such as in various chilies, poultry products, and tomatoes. On the other hand, rice prices have increased by scarcity of fertilizers and weather influences that disrupt the production of gadu harvests.
"The government is taking various mitigation measures to maintain the availability of supply and smooth distribution of food commodities so that food inflation remains under control," he said.
He claims this strategy provides positive results through the use of various budgets, such as food security budgets and infrastructure budgets to facilitate affordable food supply.
"Regional Incentive Funds (DID) given to local governments have also proven to be effective in encouraging regions to work even harder in controlling inflation in their regions," he said.
Febrio added, for core inflation, the trend continued to rise moderately, reaching 3.3 percent yoy, or slightly increased compared to the previous month of 3.2 percent. The increase was driven by an increase in inflation of several expenditure groups such as housing, transportation, education, and services for providing food and beverages or restaurants.
"The increase in core inflation reflects the overall increase in domestic demand in line with the improving pandemic conditions," he stressed.
For administered price inflation, it was recorded that moving stably at 13.3 percent yoy driven by the continued impact of fuel price adjustments (bensin and diesel) in September.
"Additional social assistance in the form of direct cash assistance and wage subsidy assistance continues to be distributed by the government to maintain people's purchasing power," continued Febrio.
The Ministry of Finance itself is committed to continuing to control inflation both at the center and in the regions, especially to reduce the impact of the increase in fuel. Meanwhile, efforts are now being taken through market operations in various regions to maintain food price stability in coordination between TPIP and TPID.
The role of the Central Inflation Control Team (TPIP) and the Regional Inflation Control Team (TPID) has succeeded in maintaining volatile food inflation. This good performance needs to be maintained and improved. In the future, inflationary pressures related to seasonal effects, especially the rainy season, must be watched out for together," closed Febrio.
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