Monday, September 25, 2023

Indonesia's May Inflation Accelerates to The Highest Level Since 2017

Jakarta Globe
June 2, 2022 | 4:04 pm
This undated photo shows a jet operated by Citilink Indonesia. (B1 Photo/Mohammad Defrizal)
This undated photo shows a jet operated by Citilink Indonesia. (B1 Photo/Mohammad Defrizal)

Jakarta. The May inflation in Indonesia has accelerated to the highest level since December 2017, as the celebrations for the Islamic holiday Idul Fitri push costs for consumers across the board, from food items to airplane tickets, the country's statistics agency said on Thursday. 

Indonesia saw its consumer price index rose by 3.55 percent last month from the same month a year ago, data from the Central Statistics Agency (BPS) showed. In comparison, the index only rose by 3.47 percent in April. 

The consumer price index aggregates hundreds of goods and service prices each month. Changes in the index are used to measure inflation. 

"Year-on-year inflation in May 2022 of 3.55 percent is the highest inflation since December 2017 at 3.61 percent," BPS Head Margo Yuwono said in a press conference on Thursday. 


On a month-on-month basis, inflation accelerated by 0.4 percent in May, slowing from 0.95 percent in April. 

"Some of the main contributors to inflation this month include air transportation fares, chicken eggs, fresh fish, and shallots," Margo said.

Food and beverages accounted for half of the price increase in May, BPS data showed. Meanwhile, transportation accounted for a fifth of the rise. 

Indonesia, home to the largest Muslim population globally, observed Idul Fitri on May 2 and 3. The government decided on a weeklong holiday to celebrate the occasion.

It also dropped most Covid-19 travel restrictions to allow people to continue the homecoming travel tradition, which has been on hold for two years due to the pandemic. 

An estimation from the Ministry of Transportation showed more than 85 million Indonesians traveled during the holiday, increasing the demand for goods and services across the archipelago.

Margo said that 87 out of 90 cities the agency monitored experienced inflation. The highest inflation occurred in Tanjung Pandan, Bangka-Belitung Islands, at 2.24 percent, while the lowest inflation occurred in Tangerang, Banten, and Gunungsitoli, North Sumatra. Only three experienced deflation, including Kotamobagu in North Sulawesi at -0.21 and Merauke in Papua at -0.02 percent.

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