October 2020, Inflation Rate in Jakarta Remains Low and Under Control

Jakarta Consumer Price Index (CPI) in October 2020 recorded inflation rate at 0.01% (mtm) or slightly lower than previous month's inflation rate 0.02% (mtm).

Restaurants/F&B supply group contributed to inflation by 0.02% in October 2020

Jakarta CPI inflation mainly sourced from inflation in restaurants/food and beverage (F&B) supply group, transportation group, clothing and footwear group, and household equipment, appliances, and daily maintenance group.

Bank Indonesia's Jakarta Representative Office Director, Luctor E. Tapiheru said, with these developments, annual inflation rate in Jakarta in October 2020 was recorded at 1.58% (yoy) with calendar year inflation rate of 1.05% (ytd)

Inflation in Jakarta Reaches 0.02 Percent in September 2020

"Restaurants/F&B supply group contributed to inflation by 0.02% in October 2020. Inflation in this group originated from increasing price for rice with side dish and pepes. While each of transportation group, clothing and footwear group and household equipment, appliances, and daily maintenance group contributed 0.01% to inflation in October 2020," he said in written statement, Tuesday (11/3).

According to him, this inflation occurred due to increase in community activity and mobility during transitional PSBB period. Low inflation in October caused by deflation in four expenditure groups, namely F&B and tobacco group. Next, is housing, water, electricity, domestic fuel, health groups, as well as recreation, sport, and culture groups.

Meanwhile, deflation in F&B and tobacco category sourced from lower prices for several food commodities, particularly purebred chicken meat and eggs. Despite the decline in various food commodities prices, there is inflation in several food commodities, such as red chilies, shallots, which triggered by decrease in supply and caused further deflation in food sub-group.

"The reduction in electricity tariffs for non-subsidized low-class customers which imposed by PLN from October to December 2020 as an incentive in the midst of COVID-19 pandemic has contributed to deflation in housing, water, electricity, and domestic fuel group," he mentioned.

On the other side, two expenditure groups which recorded stable in October, namely education group and information, communication, and financial services group.

According to him, Jakarta CPI in October 2020 can be controlled due to good coordination and proactive steps taken by Jakarta Regional Inflation Control Team (TPID).

In order to maintain availability of strategic food commodity supplies in Jakarta, during October 2020, Jakarta TPID conducted several activities including weekly coordination meetings related to supply monitoring and price control, as well as signing trade cooperation in form of Memorandum of Understanding (MoU) between PT. Sang Hyang Sri and PT. Food Station Tjipinang Jaya on October 8, 2020 followed by joint rice harvest on October 23, 2020 in Subang, West Java.

In terms of maintaining affordability, Jakarta TPID through BUMD Dharma Jaya conducted market operations by providing discounts on several products until October 31. Jakarta TPID coordination also carried out through National Coordination Meeting for Inflation Control held on October 22, 2020. At that meeting, Jakarta TPID was nominated as the 1st TPID with Best Performance in Java-Bali Province.

"In the future, Bank Indonesia consistency and commitment in maintaining price stability and coordination between Bank Indonesia, Jakarta Government and Central Government through TPIP (Central Inflation Control Team), TPID, and existing forums will continue to be maintained to control inflation rate in Jakarta and achieve national inflation target," he asserted.