Government's Fuel Price Hike Pushes Transportation Inflation to 15.26% in 2022

Economics & Macro

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Viva Budy Kusnandar 02/01/2023 16:10 WIB

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The Indonesian government's September 2022 price hike for Pertalite, Solar, and Pertamax fuel triggered an 8.8% surge in monthly inflation in the transportation sector, contributing to overall nationa

Indonesia's Annual Inflation Rate by Sector (2022)

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Government's Fuel Price Hike Pushes Transportation Inflation to 15.26% in 2022

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Indonesia's Annual Inflation Rate by Sector (2022)

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The Central Statistics Agency (BPS) reported that inflation in the transportation sector reached 15.26% in 2022, significantly higher than the overall inflation rate of 5.51%. This figure was also the highest compared to other sectors.

BPS Head Margo Yuwono revealed that the government's policy to increase fuel prices was one of the triggers for inflation last year.

In early September 2022, the government raised the price of Pertalite fuel by 30.72%, Solar by 32.04%, and Pertamax by 16%. This caused inflation in the transportation sector to surge to 8.8% (month-on-month/mom) or 16.01% (year-on-year/yoy) in September 2022.

"To mitigate this impact, the Central Government and Regional Governments collaborated on inflation control policies," said Margo Yuwono in a press conference broadcast on the official BPS YouTube channel on Monday (2/1/2023).

Besides transportation, sectors experiencing high inflation last year were personal care (5.91%); food, beverages, and tobacco (5.83%); and household goods (4.86%).

The information, communication, and financial services sector, however, recorded a deflation of 0.36% in 2022.

Here's a breakdown of the contribution of inflation per expenditure group in 2022:

* Transportation: 1.84%
* Food: 1.51%
* Housing: 0.74%
* Food Provision: 0.40%
* Personal Care: 0.37%
* Household Goods: 0.29%
* Education: 0.16%
* Health: 0.08%
* Clothing: 0.08%
* Recreation: 0.06%
* Information & Communication: -0.02%

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Government's Fuel Price Hike Pushes Transportation Inflation to 15.26% in 2022

Government's Fuel Price Hike Pushes Transportation Inflation to 15.26% in 2022

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Government's Fuel Price Hike Pushes Transportation Inflation to 15.26% in 2022

Government's Fuel Price Hike Pushes Transportation Inflation to 15.26% in 2022

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