TIME.CO, Jakarta – Bank Indonesia Governor Perry Warjiyo said the impact of rising fuel prices on commodity prices is increasingly felt. This condition is thought to result in inflation increased.
“BI research shows impact second round it will last about 3 months, and so this month the chances of inflation have increased, “Perry said during a virtual press conference on Thursday, September 22, 2022.
The expected high inflation rate cannot be separated from the impact of rising fuel prices which has an impact on the price of transport tariffs as part of the sector directly or indirectly affected. first round effect. This increase also extended to fluctuations in the price of goods due to the o second turn effect.
Looking at the situation, the price monitoring survey Bank of Indonesia for September 2022 shows that inflation will rise to 5.89% yoy from the realization of last month to the level of 4.69%. This month’s inflation data, Perry said, will be the highest.
“The highest is obviously this month, due to the direct impact of the subsidy price adjustment and, of course, also due to transportation tariffs, although transportation tariffs are not yet complete,” he said.
Over the next three months, Perry continued, the impact of inflation from rising fuel prices will continue to be felt. Until the end of 2022, inflation will rise to a level above 6% due to a 1.8-1.9% increase in fuel prices.
To reduce inflation potential, Perry said BI will achieve stronger political synergies with central and regional governments. The synergy is both on the supply side and on the demand side. The goal is to ensure that inflation returns to target in the second half of 2023.
“Not only food inflation, but also transport tariffs. The hope is that with this inflation it could be more controllable and hopefully it is slightly above 6%, of course this is the peak and it will decrease, ”Perry said.
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