Herman, Jakarta – The Central Statistics Agency, or BPS, reported on Wednesday that the food, beverages, and tobacco expenditure group was the largest contributor to the 0.56 percent inflation in January 2022.

Indonesia's consumer price index (CPI) reached 108.26 in January. BPS reported that 85 out of the 90 cities that it had observed saw inflation, whereas the remaining five had a deflation. According to BPS, the food, beverage, tobacco expenditure group accounts for 0.30 percent of the inflation rate in January. This group's inflation stood at 1.17 percent.

"There are three commodities [in this expenditure group] that greatly contribute to inflation, namely broiler chicken meat, fresh fish, and rice," BPS head Margo Yuwono told a conference on Wednesday.

Prices of broiler chicken eggs, tomatoes, cooking oil, shallots, cigarettes, household fuel, detergents, among others, also rose in January. Housekeeper wages, house rent, car prices also increased. BPS reported a decline in prices of red chili, air freight, as well as money transfer administrative fees.

Core inflation was at 0.42 percent in January, with the index rising from 107.60 points in December to 108.05 last month. Administered prices and volatile foods inflations were at 0.38 percent and 1.30 percent respectively.

Core inflation accounted for 0.27 percent of the inflation. Administered prices and volatile food made up 0.07 percent and 0.22 percent of the inflation respectively, according to BPS.

Source: https://jakartaglobe.id/business/food-beverages-tobacco-top-contributors-to-january-inflatio