Keeping Inflation in Jambi Province

In July 2022, Jambi City experienced 1.30 percent inflation with a Consumer Price Index (CPI) of 115.52 and Muara Bungo City inflation of 1.05 percent with a Consumer Price Index (CPI) of 115.16. The inflation rate for the calendar year and year on year in Jambi City this month are 6.96 percent and 8.55 percent, respectively. Meanwhile, the inflation rate for the calendar year and year on year in Muara Bungo City was 6.94 percent and 8.55 percent, respectively. The combined inflation of Jambi City and Muara Bungo City in July 2022 was 1.27 percent. Jambi City and Muara Bungo City City became the cities with the highest calendar year inflation nationally, January to July 2022 out of 90 CPI cities in Indonesia. Jambi City's inflation occurred due to an increase in prices as indicated by an increase in the price index in seven expenditure groups, namely: Food, Beverages and Tobacco by 3.31 percent; Clothing and Footwear group by 0.15 percent; the Housing, Water, Electricity, and Household Fuel group by 0.57 percent; the group of Equipment, Equipment, and Routine Household Maintenance by 0.50 percent; transportation group by 0.38 percent; Education group by 0.38 percent; and the Personal Care and Other Services group by 0.56 percent. The main commodities that contributed to the inflation in Jambi City in July 2022 were: red chilies by 1.0475 percent; shallots by 0.1546 percent; household fuel by 0.1175 percent; cayenne pepper by 0.0462 percent; broiler meat by 0.0300 percent; shampoo by 0.0223 percent; car of 0.0203; elementary school by 0.0151 percent; green chili by 0.0133 percent; and liquid soap/dishwashing of 0.0120. The same thing happened to Muara Bungo City inflation which was also formed due to an increase in the price index in nine expenditure groups, namely the Food, Beverage and Tobacco group by 2.82 percent; Clothing and Footwear group by 0.33 percent; Housing, Water, Electricity, and Household Fuel group by 0.04 percent; the group of Equipment, Equipment, and Routine Household Maintenance by 0.03 percent; Transportation group by 0.92 percent; Information, Communication, and Financial Services group by 0.09 percent; the Recreation, Sports, and Culture group by 0.52 percent; Education group by 0.06 percent; and the Food and Beverage/Restaurant Provision group by 0.05 percent. The main commodities that contributed to the inflation of Muara Bungo City in July 2022 were red chilies by 1.1613 percent; cayenne pepper by 0.1425 percent; white cigarettes by 0.0439 percent; air transportation by 0.0431 percent; cars by 0.0320 percent; potatoes by 0.0310 percent; household fuel by 0.0219 percent; motorcycles by 0.0177 percent; tomatoes by 0.0159 percent; and filter kretek cigarettes by 0.0124 percent. Since March 2022, the cities of Jambi and Muara Bungo have experienced quite high inflation. In March 2022, Jambi City experienced inflation of 1.35 percent and Muara Bungo City experienced inflation of 1.10 percent. In April 2022, Jambi City experienced 1.53 percent inflation and Muara Bungo City experienced 1.25 percent inflation. In May 2022, Jambi City experienced inflation of 0.78 percent and Muara Bungo City experienced inflation of 0.91 percent. In June 2022, Jambi City experienced 1.55 percent inflation and Muara Bungo City experienced 1.43 percent inflation. And in July 2022, Jambi City experienced inflation of 1.30 percent and Muara Bungo City experienced inflation of 1.05 percent.

Inflation arises when the increase in demand exceeds the supply in the market. However, the government still needs to anticipate the increase or excessive price fluctuations.

Then, what should be done to control inflation in Jambi?

First, ensuring adequate supply and smooth distribution of commodities contributing to inflation. Extra attention should be paid to commodities that contribute to inflation. Synergic cooperation between Bulog, the Ministry of Agriculture, and the Ministry of Trade is absolutely necessary. The government must also ensure that transportation costs do not increase significantly. Second, extra attention should be paid to traditional markets. According to the Association of Food and Beverage Companies, 85-90 percent of residents still depend on traditional markets to meet their daily needs. The rest shop at the modern market. If supply and prices in traditional markets can be maintained, food prices will be stable. Third, the price speculation from some collectors and traders, they often call it "as long as possible". According to them, buyers will continue to look for the goods they need even if the price rises unnaturally.

This is something that the government needs to monitor, some markets have even set the Highest Retail Price (HET), especially for foodstuffs that are desperately needed during the month of Ramadan such as cooking oil, meat, eggs, and others. This will keep inflation under control and people's purchasing power will be maintained.

Fourth, market operations still need to be carried out to ensure prices remain stable or move within a reasonable range in the market. However, in order not to cause a negative response from the market, the Food Task Force should put the brakes on not aggressively entering the market. Exceptions apply if the Task Force has confirmed that there is initial evidence that leads to criminal acts in the food sector. (Jambi Data/Distribution)