The global energy crisis puts pressure on domestic inflation

BPS Head Margo Yuwono explained about the impact of the global energy crisis on the domestic inflation rate in an online press conference, Monday (1/8). (Photo: Hartatik)

Jakarta – The global energy crisis puts pressure on domestic inflation throughout 2022, officials said Monday (1/8). This pressure can be seen from the July 2022 inflation which has increased again. The Central Statistics Agency (BPS) noted that inflation in July 2022 was 0.64% mom (month of month) or on an annual basis reaching 4.94% yoy (year of year).

“The global energy crisis has put pressure on domestic inflation throughout 2022. In particular, the energy component continues to strengthen,” BPS Head Margo Yuwono said in an online press conference.

This increase in energy component prices can be seen from the global commodity price index of energy components in June 2022 which was 171.24 or increased from 160.92 in May 2022.

The increase in energy prices at this level eventually led the government to increase domestic energy prices, particularly fuel oil (BBM) and non-subsidized gas, as well as electricity rates for household groups R2 or with a power of 3,500 VA and above as well as government groups.

Yuwono detailed that the average price of Pertamax turbo only increased by 12%, then Dexlite rose 16%, Pertamina Dex increased 20%, and 12-kg LPG canisters rose 14%. Likewise, the price of electricity for household groups R2, R3, and government P1 and P3 showed an average increase of 17.64% and the government group P2 increased by 36.61%.

Even so, he said that he believes the government has taken steps to anticipate the impact of this price increase on public consumption. “As related to energy, the government has reduced inflation by providing subsidies,” Yuwono said. (Hartatik)

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