October Inflation Reached 5.71%

The Central Statistics Agency (BPS) has released data on Indonesia’s inflation. In the period of October 2022, month-to-month (mtm), inflation reached 1.66%. This figure resulted in the annual inflation rate being 5.71% (year-on-year/YoY).

“In October 2022, inflation was 5.71 percent compared to last year [yoy],” said Deputy for Distribution Statistics and Services at BPS Setianto in an official statement, Tuesday (1/11/022).

He said the highest contributors to annual inflation include gasoline prices, urban transportation fares, rice, diesel, and online vehicle fares.

Setianto said BPS monitors inflation in 90 cities in Indonesia. According to him, the inflation rate in most cities is starting to weaken.

The spread of inflation, he continued, was highest in Sumatra at 7.92 percent, in Java the highest at 7.54 percent, in Bali Nusra the highest inflation was in Kupang at 8.06 percent, and Kalimantan the highest at 9.11 percent.

Previously, BPS noted that Indonesia experienced inflation of 1.17 percent in September 2022 (month-to-month/mtm). This condition makes the annual inflation rate has penetrated 5.95 percent.

Bank Indonesia (BI) estimates that the inflation rate in October 2022 will record a slight decline to the level of 5.8 percent compared to the inflation realization in September 2022.

BI Deputy Governor Dody Budi Waluyo said the inflation rate in October 2022 is estimated to reach 5.8 percent year-on-year (YoY).

“Our inflation data last month was close to 6 percent, our last survey in October 2022 showed our inflation only slightly decreased by 5.8 percent [in October],” he said at the Central Sulawesi Food Inflation Control National Movement (GNPIP), Monday (31 /10/2022).

Dody estimates that inflation in the volatile food component will be controlled at a level below 10 percent in October 2022.

“There is deflation for food prices. I believe it comes from all the efforts made through the National Movement for Food Inflation Control [GNPIP],” he explained.

On the other hand, BNI Sekuritas economist Damhuri Nasution said the second round effect of the subsidized fuel price hike was still there.

“The second round effect of the increase in subsidized fuel prices in September was still present in October, especially in the transportation sector such as urban and inter-city transportation fares in several regions, and others,” Damhuri said, quoted

However, the sloping prices of some food commodities have made inflation lower.

“The decline in prices of several necessities such as chili, onions, cooking oil, and others has prevented inflation to a higher level,” he said.