Inflation Back To Normal Level, Ministry Of Finance: Government Consistency Performs Control

Illustration (Photo: Doc. Ministry of Finance)

The Ministry of Finance (Kemenkeu) gave an official statement regarding the report from the Central Statistics Agency (BPS) which stated that general inflation (Consumer Price Index/IHK) was 4 percent year on year (yoy) in May 2023. This level is in accordance with the government's target, which is 3 percent plus minus 1 percent.

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Kacaribu, said that May inflation was lower than April's 4.3 percent. According to him, the inflation rate last month was the lowest since the beginning of the year.

"The downward trend in inflation reflects the Government's consistency in controlling inflation," he said in a written statement quoted on Tuesday, June 6.

Febrio explained that the government continues to make efforts to stabilize food prices in order to maintain food security. This is reflected in the volatile movement of food price inflation (volatile food) which has slowed to 3.3 percent (yoy), lower than April 2023 by 3.7 percent.

"The control of food prices is supported by the big harvest of rice and various chilies," he added.

On the other hand, several commodities such as poultry products and various onions tend to experience an increase in prices.

Therefore, he continued, the government continues to be alert in responding and anticipating further price increases with various efforts, such as additional stock in markets, distribution facilities, and low-cost food titles.

"In the future, the government has prepared to face the risk of increasing food prices ahead of Eid al-Adha and the potential impact of El Nino," he said.

Furthermore, the trend of slowing down inflation also occurred in the core and administrative price components. Core inflation in May was recorded at 2.66 percent (yoy), lower than April 2.83 percent.

Febrio said, all expenditure groups experienced a slowdown except for private care groups and other services. Meanwhile, government-regulated price inflation (administered price) slowed again from 10.32 percent (yoy) in April to 9.52 percent last May.

Sri Mulyani's subordinate revealed that maintaining administrative price inflation shows that the government's efforts are quite effective in managing domestic energy prices and air transportation rates.

"The slowdown in inflation that occurs is influenced by a decrease in inflation in all components of its formation," he stressed.

Febrio ensured that the government would continue to be consistent in controlling inflation with various stabilization efforts, including maintaining supply and smooth distribution, as well as anticipating the impact of weather disturbances and drought risks.

"Coordination between ministries/agencies at the central and regional levels as well as optimizing the use of the APBN and APBD is also continuously strengthened to prevent price spikes," closed Febrio.