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Cooking oil crisis leads to record inflation in March
A change in cooking oil policy on top of gradual increases in mobility and economic activity in Indonesia contributed to the month’s consumer price increases.
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Residents carry bottles of cooking oil during a market operation conducted by the Trade Ministry at Trayeman traditional market in Tegal, Central Java, on March 14, 2022. Rising cooking oil prices were a major contributor to inflation that month. (Antara/Oky Lukmansyah)
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nflation climbed to a 22-month high in March, driven by increased economic activity amid eased COVID-19 curbs and rising food prices, particularly of red chili and cooking oil.
Statistics Indonesia (BPS) reported on Friday that the consumer price index (CPI) had risen 2.64 percent year-on-year (yoy) in March, the highest level since April 2020.
On a monthly basis, the CPI rose 0.66 percent in March, the highest since May 2019.
“Inflation in March was mainly due to [increases in the price of] chili peppers, household fuel, gold and cooking oil,” said BPS chief Margo Yuwono during a live broadcast.
Read also: Indonesia raises palm oil export levies
Domestic economic activity intensified last month as the government eased mobility restrictions after the country passed the peak of an Omicron wave.
The food, beverage and tobacco segment was the largest contributor to monthly inflation in March at 0.38 percent, mainly driven by rising prices of red chili pepper, cooking oil and chicken eggs.
