W Sumatra Inflation in April was Under Control

Padang, (Antaranews Sumbar) - Bank Indonesia (BI) representative of West Sumatra assessed that provincial inflation rate in April 2018 is quite controlled with the number of 0.02 percent or down compared to March's position at 0.31 percent.

"In disaggregation, inflationary pressure in April 2018 stems from rising prices of non-subsidized white cigarettes and non-subsidized fuels," Chief of BI representative of West Sumatra, Endy Dwi Tjahjono stated in Padang on Friday.

He assessed that non-subsidized fuel price increases, especially non-subsidized oil and diesel, and limited supply of premiums in the region are thought to be the causes of inflation.

The rising price of white cigarette due to adjustment of gradual price made by seller to accommodate the increase of cigarette excise tariff in 2018 also affect West Sumatra inflation, he explained.

In the food group, the increase of onion price was caused by the decrease of supply from Alahan Panjang onion center area, Solok District, so that the distributor brought the stock from outside the area, he added.

Considering the development of West Sumatra consumer price index, he warned that anticipation is needed because higher inflation pressure will occur in May 2018.

The cause of inflationary pressures is indicated by increased demand in Ramadhan, as well as the possible continued impact of non-subsidized fuel price adjustments, he said.

Then the weakening of rupiah against US dollar, as well as the possibility of rising prices of gold and world oil due to political turbulence and the tendency of global economic uncertainty potentially also put pressure on inflation in May 2018.

However, rainfall that began to decrease compared to the previous month is expected to reduce the risk of crop failure and disruption of strategic food distribution from producers to consumers, he said.

Endy added that his side appealed to regional head to anticipate the rising inflationary pressure in Ramadhan and the celebration of Eid al-Fitr 2018.

Such efforts can be made through enhancing the coordination of Local Inflation Control Team to ensure adequate local food supply.

Another effort is managing the positive expectations of community through the intensity of communication to public, especially information on prices and availability of goods through the media, as well as an appeal to be wise in shopping during Ramadhan and Eid al-Fitr, he added. (cha)