Padang, (Antaranews Sumbar) - Bank Indonesia (BI) representative of West Sumatra estimates the inflation rate in the second quarter of 2018 will increase in the range of 3.5 percent to 3.9 percent.
"Inflationary pressure in the second quarter came from volatile food group, especially red chili and government-managed goods group, namely the increase of air transport tickets," Head of West Sumatra Regional Representative Office of BI, Endy Dwi Tjahjono stated in Padang on Monday in West Sumatra Regional Economic and Financial Review on February 2018 .
According to him, the price of red chili has increased in the second quarter of 2018 due to the increase in domestic consumption related to Ramadan and Eid Al-Fitr (Lebaran).
"High demand for red chili from other province such as Riau also put additional pressure on West Sumatra supply," he remarked.
On the other hand, he saw there is such tendency of merchants to raise the price of various goods before Lebaran.
In addition, the tradition of returning to back home together also triggered the demand for tickets that were responded by price increases by the airline.
He said the air transport inflation rate could be higher because the government policy of raising the lower limit of air transport tariff.
Besides, the continuing rise in coal prices has the potential to adjust the electricity tariff, he added. (cha)
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