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Fuel-price hike will contribute 1.3 percent to inflation in Banyumas
Bank Indonesia (BI) Purwokerto, Central Java, predicts that the recent subsidized fuel price hike will likely contribute around 1
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ank Indonesia (BI) Purwokerto, Central Java, predicts that the recent subsidized fuel price hike will likely contribute around 1.3 percent to the inflation rate in November and December in its working areas, which cover the Banjarnegara, Banyumas, Cilacap and Purbalingga regencies.
'According to the central bank, the increases in subsidized fuel prices in Purwokerto will contribute plus or minus 1.37 percent and 0.04 percent to inflation in November,' BI Purworkerto head Rahmat Hernowo said in a statement made available to The Jakarta Post on Wednesday.
On Monday, the government announced the increases in subsidized fuel prices, which took effect on Tuesday. The new price of Premium gasoline is Rp 8,500 (69 US cents) per liter, up from Rp 6,500. Meanwhile, diesel sells at Rp 7,500 per liter, up from Rp 5,500.
'This puts pressure on inflation figures in November and December,' said Rahmat.
According to BI Purwokerto data, consumer spending on Premium and diesel are quite high, especially in Cilacap and Purwokerto.
In Purwokerto, gasoline ranks at the top of people's spending, reaching 4.41 percent of total monthly spending. This is higher than spending on rice, which ranks second with 4.09 percent of total monthly spending. Meanwhile, consumer spending on diesel accounts for only 0.12 percent.
In Cilacap, consumer spending on gasoline accounts for 3.58 percent of total monthly spending. In the city, gasoline ranks third after rice (5.24 percent) and cooked rice (5.23 percent), while spending for diesel accounts for 0.06 percent.
Rahmat said that inflation calculations conducted by the Center Statistics Agency show that the more people consume a particular commodity, the more it contributes to those calculations.
"This means increases in the price of a commodity with a high consumption level will bring a significant impact to the formation of inflation figures,' he said.
Rahmat further said price monitoring activities conducted by the central bank in two main markets in Purwokerto ' the Wage and Manis markets ' had not yet identified increases in commodities cause by the fuel-price hike.
Increases in prices of several commodities such as chicken, beef, red chilis and a number of vegetables were primarily caused by a shortage of supply.
'It has nothing to do with the subsidized fuel price hike,' said Rahmat. (ebf)(+++)
