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Jakarta Post

Prolonged drought threatens food supplies, inflation

  • Rachmadea Aisyah

    The Jakarta Post

Jakarta   /   Thu, August 1, 2019   /  06:20 pm
The Jakarta Post Image
Although the dry season will reach its peak in August, its impacts have already been felt across the country.(JP/Seto Wardhana)

  Experts have urged the government to boost efforts in managing food supplies following warnings that this year’s prolonged dry season may impact the availability of certain commodities and ultimately, consumer prices.  Food commodities have consistently been the largest contributor to increases in consumer prices in Indonesia, given that a large portion of household spending accounts for more than half of the country’s gross domestic product (GDP). In July, food prices rose 0.8 percent month-on-month (mom0 and contributed 0.17 percent to inflation, Statistics Indonesia (BPS) revealed on Thursday. The commodities recorded a 4.85 percent annual inflation, higher than the headline inflation of 3.32 percent year-on-year (yoy). “Last year’s dry season was manageable, because the government kept tight supervision on volatile food stocks,&rdq...