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View all search resultsEgg, chicken demand drives food inflation to two-year high
Food prices rose 6.6 percent in October after a 6.44 percent increase in September.
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Fragile situation: A vendor handles eggs on Tuesday at Tebet Barat Market in South Jakarta. (JP/Seto Wardhana)
F
ood prices climbed to their highest level in more than two years, rising 6.6 percent year-on-year (yoy) in October, driven by surging demand for eggs and chicken, data from Statistics Indonesia (BPS) shows.
The increase, which was faster than the 6.44 percent recorded in September, was largely attributed to key food commodities such as red chili peppers, eggs and chicken, which were the biggest contributors to overall price gains, BPS deputy for distribution and services Pudji Ismartini said during a press conference on Monday.
Eggs and chicken recorded annual inflation of 4.43 percent and 1.13 percent, respectively, she said, adding that both are top contributors to monthly inflation.
“The increase in egg and chicken prices was influenced by various factors, including higher demand from nutrition fulfillment service unit [SPPG] kitchens that source their supplies from markets, retailers and wholesalers,” Pudji said, referring to kitchens that prepare daily meals under the government’s free nutritious meal program for schoolchildren.
“This is one of the indications of rising demand for eggs and chicken,” she added.
Pudji noted that production costs for broiler chicken had also been rising, including for day-old chicks (DOC), live bird prices and feed corn in several regions.
However, BPS “does not calculate inflation directly attributed to the [free meals] program,” she said, adding that inflation in regions associated with the program could not be specifically identified in the agency’s data.
