Sri Mulyani: Indonesia's inflation of 4.94 percent is still relatively moderate

Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati as Chair of the Financial System Stability Committee (KSSK) said that Indonesia's inflation of 4.94 percent (yoy) in July 2022 was still relatively moderate amid high global pressures.

"Indonesia's inflation of 4.94 percent (yoy) is still relatively moderate," said Minister of Finance Sri Mulyani at a press conference in Jakarta, Monday.

Sri Mulyani explained that Indonesia's inflation rate showed an increasing trend due to the supply side in line with rising world commodity prices and supply disruptions in the domestic market.

The inflation rate in July 2022 which was recorded at 4.94 percent (yoy) increased compared to June 2022 which was 4.35 percent (yoy) and the position at the end of the first quarter which was still at 2.64 percent (yoy).

Nevertheless, core inflation was maintained at 2.86 percent (yoy) because it was supported by the consistency of Bank Indonesia (BI) policies in maintaining Indonesia's inflation expectations.

Inflation control synergy was carried out by Bank Indonesia and the government, including by increasing coordination in the central and regional government inflation control team forums.

Meanwhile, inflation in the volatile food category increased, mainly due to high global food prices and supply disruptions due to weather. For inflation in the administered price groupaffected by the increase in air freight ticket prices.

On the other hand, inflationary pressures due to very high global energy prices were not transmitted to the country in the administered prices of oil, gas and electricity prices.

This is the result of the government's policy to maintain the selling price of domestic energy through an increase in electricity subsidies as well as fuel and LPG energy allocated by the State Revenue and Expenditure Budget (APBN).

These various measures also made Indonesia's inflation rate still better than peer countries at the level of Indonesia, such as Thailand at 7.7 percent, India at 7 percent, and the Philippines at 6.1 percent.