Jakarta, CNBC Indonesia – Increases in prices of goods and services increase inflation rates that occur in almost all of the world. However, the inflation rate varies from country to country. So, how bad is inflation in Indonesia compared to inflation in the main countries of the world?
According to World Population ReviewInflation in the economic world is defined as a condition in which the prices of goods and services increase continuously within a certain period of time.
The global economy, which has not yet fully recovered from the Covid-19 pandemic, must be confronted by the Russo-Ukrainian war, as well as the lockdown in several cities in China which has an impact on global supply.
Russia is a major supplier of oil, gas and metals commodities. Meanwhile, Ukraine is a major supplier of wheat and corn. The war, which is still heating up to this day, has helped to raise the prices of food and other commodities.
The Food Price Index on a monthly basis reported by the United Nations Food and Agriculture Organization (FAO) jumped 12.6% in March and reached the highest level since 1990. In addition, on an annual basis, world oil prices have jumped 77.77%, natural gas prices have skyrocketed. 180.14%, coal prices rose 315.74%.
The inflation ‘tsunami’ also hit various countries in the United States, Europe, and other countries. The Bank for International Settlements estimates that at least 60% of countries have annual inflation rates above 5%. Meanwhile in developing countries, more than half have inflation rates above 7%.
According to Refinitiv, Germany touched its highest inflation record in 41 years in April and stood at 7.4%. The inflation rate has risen for the second month in a row, triggered by the increase in goods prices which increased 12.2% and energy prices increased by 35.3% on an annual basis.
The US followed with the highest inflation record since 1982 or 40 years at 8.3% in April. The contributors are the price of food, housing, air tickets, and vehicle prices. Food prices rose 0.9%, housing costs rose 0.5% and housing costs rose 5.1% year-on-year. Meanwhile, airline ticket prices jumped 33.3%.
Meanwhile, Japan is scheduled to release April inflation data on Friday (20/5) and Hong Kong on Monday (23/5).
So, what about Indonesia? See on the next page
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