Fuel Price Hikes Hit Hard: Monthly Transportation Inflation Reaches 8% in September 2022

The Indonesian government's decision to raise subsidized fuel prices starting September 3, 2022, has resulted in high inflation in the transportation expenditure group.

Based on data from the Central Statistics Agency (BPS), the consumer price index (CPI) for the transportation sector in September 2022 was at 119.64, an 8.88% increase from the previous month.

This means that the transportation expenditure group experienced a monthly inflation rate of 8.88% (month-on-month/mom). This inflation rate is the highest compared to other expenditure groups, as shown in the graph.

The next highest inflation was experienced by the health and food and beverage sectors, each at 0.57% (mom).

Then, the household equipment, tools, and routine maintenance expenditure group experienced monthly inflation of 0.35% (mom); recreation, sports, and culture 0.31% (mom); and personal care and other services 0.28% (mom).

Following this were the education expenditure group with monthly inflation of 0.21% (mom); clothing and footwear 0.21% (mom); and housing, water, and household fuel 0.16% (mom).

Meanwhile, the information, communication, and financial services expenditure group experienced monthly deflation of 0.03% (mom). Similarly, the food, beverage, and tobacco expenditure group experienced deflation of 0.3% (mom).

The following is the annual inflation/deflation (year-on-year/yoy) in September 2022 by expenditure group:

1. Transportation: 16.01% (yoy)
2. Food, beverages, and tobacco: 7.91% (yoy)
3. General: 5.95% (yoy)
4. Personal care and other services: 5.17% (yoy)
5. Household equipment, tools, and routine maintenance: 5.04% (yoy)
6. Food and beverage provision/restaurants: 4.53% (yoy)
7. Housing, water, electricity, and household fuel: 3.19% (yoy)
8. Recreation, sports, and culture: 2.73% (yoy)
9. Education: 2.61% (yoy)
10. Health: 2.54% (yoy)
11. Clothing and Footwear: 1.56% (yoy)
12. Information, communication, and financial services: -0.31% (yoy)