Onion and Airline ticket prices dropping, trigger deflation in West Sumatra 0.16 percent

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Onion and Airline ticket prices dropping, trigger deflation in West Sumatra 0.16 percent

Onion trader in Pasar Raya Padang. (Antara / Laila Syafarud)

Padang (ANTARA) - The Consumer Price Index in W Sumatra Province recorded deflation in June 2020 of 0.16 percent or down compared to May 2020 which experienced deflation of 0.63 percent due to a decrease a number of commodities such as onions and airplane tickets.

"The rate of inflation in W Sumatra in June 2020 was recorded below the realization of national inflation of 0.18 percent and the realization of inflation in Sumatra region of 0.05 percent," said Head of Bank Indonesia of W Sumatra, Wahyu Purnama in Padang on Thursday.

According to him, deflation in W Sumatra in June 2020 came from the food, beverage and tobacco group.

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The food, beverage and tobacco group experienced deflation of 0.12 percent were caused by falling prices of groceries such as onion, red chili, garlic and sugar.

Decline to groceries, beverage and tobacco prices were caused by abundant supplies in line with the harvest period in various regions in W Sumatra.

Meanwhile, in June 2020 a number of commodities contributing to inflation in W Sumatra ranging from chicken, fish and eggs.

The increase on that prices were caused by increased demand and lack of supply in the community, he said.

In addition, other groups that contributed to deflation in June 2020 were the transportation group, the personal care group and other services

Deflation in the transportation group was contributed by decreases in air transport and inter-city transportation tariffs with deflation of 0.06 percent and 0.05 percent.

Inflation in the transportation group was also caused by increases in online two-wheeled vehicle tariffs caused by the enforcement of a new normal policy in W Sumatra region with inflation of 0.02 percent.

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Meanwhile, deflation in the personal care and other services group was caused by deflation in gold jewelry of 0.03 percent in line with global gold price movements and optimism for economic recovery amid the COVID-19 pandemic.

On the other hand, inflationary pressure in June 2020 came from inflation in the food and beverage / restaurant supply group with inflation of 0.06 percent was caused by an increase in the price of rice with side dishes as restaurants opened after the implementation of the new normal era.

To control inflation in the regions, the Regional Inflation Control Team (TPID) of W Sumatra Province has carried out various measures to control inflation, starting from monitoring food supplies, especially in 10 strategic foodstuff groups such as rice, chicken, eggs, red chillies and garlic.

Then improve the coordination and effective communication of TPID members to maintain a stable inflation target and maintain public purchasing power, especially amid the COVID-19 pandemic.

Next, do the effort to organize Inter-Regional Cooperation (KAD) for strategic food commodities in order to maintain price stability and supply sufficiency.

Transleted by: Mutiara Ramadhani

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