Strong Signals of Fuel Price Hikes, Transportation Inflation Highest Nationally in These Regencies/Cities

Domestic fuel prices, which have risen in line with soaring global crude oil prices, have fueled high inflation in several regions this year. Furthermore, the government's plan to increase subsidized fuel prices will also trigger domestic inflation, especially in the transportation sector.

Transportation inflation was the second highest after food inflation as of June 2022. Based on data from the Central Statistics Agency (BPS), food inflation reached 9.35% (year on year/yoy), while transportation inflation was 6.65% (yoy).

Signals that the government will increase subsidized fuel prices are strengthening, with the disbursement of Rp24.17 trillion in social assistance (Bansos) as a social safety net for fuel subsidy diversion.

Bau-Bau City, Southeast Sulawesi, and Manokwari Regency recorded the highest transportation inflation until July 2022.

Here are the 10 regencies/cities with the highest transportation inflation as of July 2022:

* Bau-Bau City: 30.28% (yoy)
* Manokwari: 25.37% (yoy)
* Bima City: 21.89% (yoy)
* Kupang City: 21.70% (yoy)
* Kota Baru: 20.92% (yoy)
* Tanjung Selor: 20.34% (yoy)
* Jayapura City: 19.56% (yoy)
* Sorong City: 19.21% (yoy)
* Manado City: 17.58% (yoy)
* Mataram City: 17.36% (yoy)
* National: 6.65% (yoy)