DENPASAR, ULTIMOPARADISO – BPS Province of Bali released that in September 2022 Bali Province experienced inflation of 0.54% (mtm) or 6.84% (yoy). This means that monthly inflation in Bali is lower than the national inflation of 1.17% (mtm). However, on an annual basis, it is still above the national level (5.95%, yoy).
The monthly inflation in Bali Province, which is lower than the national one, is inseparable from the efforts of the Provincial and Regency/City Regional Inflation Control Teams (TPID) in Bali to push down prices for volatile foods (especially horticultural commodities), as well as the second round effect on commodity prices for the core group. inflation. This was said by the Head of Representative of Bank Indonesia Bali, Trisno Nugroho in Denpasar recently.
In detail, the administered price (AP) group experienced a spike in inflation of 6.88% (mtm), higher than the previous month’s 0.31% (mtm). Inflationary pressures stemmed from the increase in non-subsidized fuel prices as of September 3, 2022, followed by increases in inter-city transportation fares, household fuel, filter kretek cigarettes, and white cigarettes.
On the other hand, the component that restrains the inflation rate is air transportation fares in line with the downward trend in global oil prices and the declining demand for airline tickets in line with the decline in domestic flight activity in September compared to the previous month.
Meanwhile, the core inflation group recorded a deflation of -0.14%, a reversal from the previous month’s inflation of 0.54% (mtm). Deflation in this group was influenced by the decline in demand for canang sari in line with the reduced intensity of religious ceremonies. On the other hand, deflationary pressures were restrained by rising prices of oily pastries in line with rising wheat flour prices.
Furthermore, the volatile foods category experienced deflation of -3.33% (mtm), higher than the deflation in the previous month of -3.74% (mtm). The deflation of volatile foods was mainly driven by the decline in the prices of shallots, tomatoes and red chilies in line with the ongoing harvest season in the production centers (Bangli Regency). In addition, deflation also stems from the decline in cooking oil prices in line with the downward trend in global CPO prices and the decline in the price of purebred chicken due to the high import of Day Old Chicken (DOC) a few months ago. However, the rate of deflation in the volatile foods category was restrained by rising rice prices due to the end of the harvest season and high rainfall.
Furthermore, Trisno said that in October 2022, Bali Province is predicted to experience inflation, but lower than the previous month. Inflationary pressures are expected to come from the continued impact of rising fuel prices, then rising rice prices as the harvest season ends, as well as rising fish prices due to high rainfall and sea waves.
Provincial and Regency/City TPIDs in Bali always coordinate to monitor prices and supply, carry out intensive market operations, increase Inter-Regional Cooperation (KAD) to meet supply, and increase budget from Unexpected Costs (BTT) APBD for control programs inflation in Bali Province.***go
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