HEAD of the Ministry of Finance’s Fiscal Policy Agency, Febrio Nathan Kacaribu, said that the inflation rate in March 2024, which rose to 3.05%, was considered still under control. This is because the increase is largely driven by the seasonal factors of Ramadan and Eid al-Fitr.
“This increase is influenced by the increase in prices of most food commodities during Ramadan. Historically, during Ramadan and Eid al-Fitr there is an increase in seasonal demand which causes price increases,” he said as quoted in a press release, Monday (1/4) .
Febrio added that the government remains alert to the trend of increasing food prices which is still occurring. Because, on an annual basis, volatile food inflation is moving to increase to 10.33% (yoy), from 8.47% (yoy) in February 2024.
This increase was driven by rising commodity prices, such as rice, purebred chicken meat and eggs, red chilies and garlic. In the midst of hampered food production and the postponement of the main harvest, said Febrio, the government continues to strive to stabilize supplies and prices to ensure people’s access to food.
Core inflation in March 2024 also increased by 1.77% (yoy), slightly higher than February 2024 (1.68% yoy). Several expenditure groups experienced an increase, including food, provision of food/drinks, personal care, education and health.
Meanwhile, government regulated price inflation (administered prices) fell to 1.39% (yoy), from 1.67% (yoy) in February 2024. Even though it is quite low, inflationary pressures in the transportation sector still need to be watched out for in line with the increase in mobility at this time. Eid homecoming season.
Also read: Volatile food price inflation still rising
“The government will continue to strive to mitigate the risk of turmoil during Ramadan and Eid al-Fitr, especially in controlling food prices and transportation rates,” explained Febrio.
He added that supply stabilization continues to be carried out to maintain adequate domestic stocks and price affordability, including through market operations and cheap markets, accelerating import procurement, relaxing the Highest Retail Price (HET) for rice and distribution of SPHP rice, as well as coordinating control of HBKN inflation throughout area.
“Inflation is expected to slow down in line with post-HBKN price corrections and support for food price stabilization policies that continue to be consistently carried out by the government,” concluded Febrio. (Mir/Z-7)
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