Limited supply of and high demand for foodstuffs was responsible for the 0.56-percent inflation recorded in January 2022, chief of Statistics Indonesia (BPS), Margo Yuwono, has informed.

“The inflation resulted not only from seasonal factors but also from supply and demand factors because, during certain months, demand increases,” he explained at an online press conference originating from Jakarta on Wednesday.

Limited supply and high demand led to a rise in foodstuff prices, he said.

The prices of several foodstuffs rose in January 2022, with purebred chicken meat contributing 0.07 percent, fresh fish 0.06 percent, and rice 0.03 percent to inflation, he noted.

“The rice price rose due to limited stocks at the end of last year. (The limited) supply increased the rice price in January,” he said.

The 0.56-percent inflation recorded in January 2022 was relatively high in the absence of the rainy season factor in November and December 2021, which usually becomes an excuse for supply constraints, he said.

The other factor contributing to the January 2022 inflation was the government’s policy, which failed to provide certainty about the extended incentive for luxury sales tax (PPnBM) and the increase in the price of non-subsidized liquefied petroleum gas (LPG) for households, Yuwono noted.

The increase in the price of non-subsidized LPG contributed 0.06 percent to inflation for the group of housing, water, electricity, and household fuel in January, he said.

Although the price of cooking oil remained high early in 2022, it did not have a significant impact on inflation because the government intervened in the domestic market by capping the highest retail price, so cooking oil only contributed 0.01 percent to inflation, he explained.

“The contribution of cooking oil to January 2022 inflation was only 0.01 percent compared to 0.08 percent in December 2021,” he highlighted.

BPS had announced earlier that the country recorded an inflation of 0.56 percent in January 2022, bringing the calendar year inflation to 0.56 percent and year-on-year inflation to 2.18 percent.

Source: Antara News