Food expenditure inflation was 8.25% (YoY) in August 2022.

The Consumer Price Index (CPI) for the sub-group of food expenditure fell by 2.35% in August 2022 compared to the previous month, which was also the highest level since the index calculation began in 2018 (2018=100), as shown in the graph. Therefore, last month saw a 2.35% deflation in food prices compared to the previous month.

However, compared to August 2021, there was an inflation rate of 8.25% (year-on-year/YoY). This means that food prices last month were still 8.25% higher than a year ago.

Heavy rainfall in areas producing food commodities such as chilies, shallots, and garlic disrupted market supply. As a result, the fluctuating prices of these food items increased until they reached consumers.

The government's policy to increase the price of subsidized fuel (BBM) starting September 3, 2022, is expected to further increase inflation in the food, beverage, and tobacco group. Although the government is making efforts to curb inflation by allocating 2% of general transfer funds, through both the General Allocation Fund (DAU) and the Special Allocation Fund (DAK), to assist the transportation sector.

The following is the inflation for the food, beverage, and tobacco expenditure group in August 2022:

1. Food, Beverages, and Tobacco: 7.73% (YoY)

* 1.a. Food: 8.25% (YoY)
* 1.b. Cigarettes and Tobacco: 7.82% (YoY)
* 1.c. Alcoholic Beverages: 4.99% (YoY)
* 1.d. Non-alcoholic Beverages: 3.04% (YoY)