CORE Economist: Decreased Inflation Evidence Of Government Success

Illustration. (Photo: Doc. Antara)

JAKARTA - Economist and Director of the Center of Reform of Economics (CORE) Piter Abdullah believes that the decline in monthly inflation rates in April 2023 shows the success of government control efforts.

Based on data from the Central Statistics Agency (BPS), the monthly inflation rate in April 2023 was recorded at 0.33 percent, lower than the inflation rate in the same month last year of 0.95 percent.

"The low inflation in April indicates the government has managed to manage inflation amid a surge in demand," Piter said, quoted from Antara, Tuesday, May 2.

According to Piter, this success was also supported by the momentum of the harvest which lasted from March to April 2023. Panen Raya helps the government manage food goods inflation more easily.

Piter also said the government's anticipation of maintaining supply chains or distribution of goods helped maintain inflation levels in April 2023. On the other hand, the government is also considered successful in controlling the surge in transportation prices through various policies, including regulating holiday time.

"This success is a continuation of the government's success which can consistently maintain inflation at a fairly low level," said Piter.

Piter's analysis is in line with that conveyed by BPS. Head of BPS Margo Yuwono said the anticipatory steps taken by the government were able to suppress inflation in April 2023 which coincided with the Eid al-Fitr or Eid al-Fitr period.

Margo explained that the government's success in controlling inflation is reflected in public transport rates and the prices of several food commodities in the cities of this year's homecoming destinations which are relatively well maintained when compared to last year.

In addition, the decline in inflation is also supported by maintained supply of horticultural commodities, main harvest activity, deflation of red chilies and cayenne pepper, as well as inflation of several food commodities which are relatively lower than the Eid moments in previous years.