The Increase of BBM is The Cause of Inflation

Illustration of a queue for filling BBM at a gas station. (Gbr. phi3wulandari.wordpress.com)

    Tired days are coming for some or maybe for everyone. The root of the problem is clearly scarcity of Bahan Bakar Minyak (BBM). Badan Pusat Statistik (BPS) stated that the increase in fuel prices in September 2022 raised the inflation rate in October 2022, which reached 5.71 percent year on year (yoy).

    In addition to the increase in fuel prices in the price component regulated by the government, aircraft fares also contribute to inflation. In this commodity, inflation was recorded at 0.35 percent.

    Meanwhile, BPS noted that in October 2022 there was a decline in the prices of food commodities. This caused the volatile price component inflation to begin to fall, from 9.02 percent (yoy) in September 2022, to 7.19 percent in October 2022, with a 1.8 percent share of inflation.

    The last component is core inflation, which describes people's purchasing power. In October 2022, BPS reported core inflation of 3.31 percent (yoy).

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