Inflation Soared in July 2022, with Food Commodities as the Biggest Contributor

Consumer price inflation, particularly for food commodities, continued to surge in July. This trend continues alongside the revival of household consumption amid economic recovery.

The food, beverage, and tobacco expenditure group recorded a year-on-year inflation of 9.35% in July, according to the Central Bureau of Statistics (BPS).

This inflation rate was the highest among other expenditure groups. Food prices surged largely due to disrupted supply chains caused by unfavorable weather conditions.

Monthly, the food, beverage, and tobacco expenditure group contributed 0.31 percentage points to overall inflation. The following commodities were the main contributors to the increase in food prices:

1. Red chilies;
2. Red onions;
3. Chili peppers;
4. Fresh fish;
5. Filtered kretek cigarettes;
6. Green chilies;
7. Instant dry noodles;
8. White cigarettes;
9. Tomatoes; and
10. Bottled water.

However, not all food commodities saw price increases in July compared to the previous month, such as cooking oil, green mustard greens, chicken eggs, water spinach, garlic, and spinach.

The information, communication, and financial services expenditure group recorded a year-on-year deflation of 0.27% in July. The decrease in the price of information and communication equipment caused the deflation in this group.

Overall, the Consumer Price Index (CPI) recorded a year-on-year inflation of 4.94% in July. This inflation rate was slightly higher than the 4.82% forecast by Bank Mandiri economists.