(malangkota.go.id) – Based on data from the Central Statistics Agency (BPS), the Consumer Price Index (CPI) of Malang City in December 2022 experienced inflation of 0,58% (mtm). Thus, during 2022, inflation in Malang City was recorded at 6,45% (yoy), lower than inflation in East Java Province which was 6,52% (yoy). However, it is higher than the national figure which was recorded at 5,51% (yoy).
This was conveyed by the Head of the Bank Indonesia Malang Representative Office, Samsun Hadi, Tuesday (03/01/2023). Spatially, Malang City's inflation ranks third highest in East Java after Jember and Surabaya.
"Inflation in the December 2022 period was driven by price increases that occurred in various expenditure groups with the largest contribution coming from the food, beverage and tobacco group at 0,45% (mtm), the transportation group at 0,06% (mtm) and the personal care and other services group at 0,05% (mtm)," he added.
Based on the commodities, Samsun continued, inflation was driven by the increase in rice prices with a contribution of 0,06% (mtm), chicken eggs 0,06% (mtm), tomatoes 0,05% (mtm), cayenne pepper 0,04% (mtm) and gold jewelry 0,04% (mtm).
Samsun further said that the increase in rice prices occurred both at the milling level and the consumer level along with the dwindling supply of rice, which is reflected in the increasingly dwindling Government Rice Reserves (CBP), as well as the decreasing harvest area and production.
The increase in the price of chicken eggs was triggered by an increase in production costs due to the impact of the strengthening US dollar which increased the cost of raw materials for animal feed production amidst increased consumption during the Christmas and New Year (Nataru) period.
Samsun further revealed that the disbursement of the basic food assistance program, which was spread over three months, namely the October-December period, also accelerated the price of chicken eggs. The increase in the price of tomatoes and cayenne pepper occurred along with the dwindling supply due to reduced harvest results amid high rainfall.
Meanwhile, the increase in gold jewelry prices follows the world gold index which is seen to be strengthening. The increase in gold prices occurred after China, as the world's largest gold consumer, announced a policy of easing mobility.
In the transportation group, air transportation ticket prices have increased along with increased demand during school holidays, Christmas celebrations and New Year's Eve.
"Higher inflation was restrained by price declines in several commodities, such as bananas with a contribution of -0,02% (mtm), dragon fruit -0,01% (mtm), red chili -0,01% (mtm), bricks -0,01% (mtm), and liquid soap -0,01% (mtm). The decline in prices of bananas, dragon fruit and red chili is in line with abundant stocks amidst the ongoing harvest season," explained Samsun.
Furthermore, inflation in 2023 still needs to be monitored as there are still challenges such as high world food and energy prices due to extreme weather and the ongoing Russia-Ukraine conflict which could affect the national inflation rate and Malang City.
However, Bank Indonesia estimates that inflation in 2023 will decline and be lower than in 2022.
"Policy synergy between the Central and Regional Governments with Bank Indonesia will continue to be strengthened through the National Movement for Controlling Food Inflation (GNPIP) and strengthening TPIP-TPID coordination to maintain the inflation level within the target range of 3,0% + 1%," concluded Samsun. (say/yon)
