JAKARTA, June 4 (JDN.id) – Despite the price of key ingredients that make up Indonesia’s local dishes is going up amid the Muslim fasting month of Ramadan, the country’s annual inflation rate was fairly subdued, the Central Statistics Bureau data showed on Monday (05/06).
The country’s consumer price index, which measures inflation level, rose 3.23 percent in May from the same period a year ago. This pace is slower than the 3.41 percent year-on-year increase in April. Meanwhile, the core inflation rate, which exclude volatile foods and administered price picked up to 2.75 percent from 2.69 percent.
Data from the Statistics Bureau, known as BPS, showed nearly all components that makes up the CPI (raw food, processed food, housing, utilities, health, education and transportation) declined in May. Only the cost of clothing that increased slightly on year-on-year calculation.
However, according to the central bank’s price monitor, in the capital city of Jakarta, the price of rice, the staple of many Indonesians was crawling up since last year. The average price of rice (the good quality and subsidized ones) was at 13,000 rupiah per kilogram as of May 1. That compared to 11,250 rupiah on May 1, 2017.
Meanwhile, the price of red chili, a key ingredients for many local dishes like Rendang, Nasi Goreng, increased to 41,250 rupiah per kg from 38,750. Chili price has seen sharp fluctuations this year as it hit its peak level for the year at 60,000 rupiah per kg on April 12.
In the Muslim-majority nation, the price of food stuffs usually climb up as despite Muslims fast in the day time, they typically have food parties in the evening, and this trend increases until before and after Idul Fitri, which marks the end of the fasting month.
Tame inflationary pressures was a relief for monetary authority, as the country is also dealing with weaker currency against the US dollar, threats of rising global crude oil prices, which all may pose further threat to consumer prices.
The central bank on May 30 raised its key rate by 25 basis points to 4.75 percent, which marked the second time it raised the rate in two weeks time as part of an effort to improve rupiah attractiveness to foreign investors and contain capital outflows.