2021 food inflation volatility relatively low: Trade Minister

2021 food inflation volatility relatively low: Trade Minister

Trade Minister Muhammad Lufti holding an online press conference on Tuesday (January 18, 2022). (ANTARA/ Tangkapan Layar Aplikasi Zoom)

If we look at 2021, there was no increase at all apparently because demand had not fully recovered and food supplies were also sufficient. So, there was no significant increase.
Jakarta (ANTARA) - Food inflation volatility was relatively low in Indonesia throughout 2021 as demand had not fully recovered and food supplies were sufficient, Trade Minister Muhammad Lufti has said.

"If we look at 2021, there was no increase at all apparently because demand had not fully recovered and food supplies were also sufficient. So, there was no significant increase," he said at a press conference on Tuesday.

The 2021 inflation was mostly contributed by core inflation of 1.04 percent, volatile food inflation of 0.52 percent, and administered price inflation of 0.30 percent, he said.

The 2021 food inflation volatility was fueled by an increase in the prices of eggs, thoroughbred chicken meat, cooking oil, bird's eye chili, and beef during the Ramadhan fasting month and Lebaran post-fasting month festivity and Christmas and New Year holidays, Lutfi noted.

"If we look at 2018, 2019, and 2020, normally the prices increased twice, namely before Lebaran and Christmas and New Year. The prices rose before Lebaran, and later fell and increased again before Christmas and New Year," he said.

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However, the prices of basic necessities have returned to the pre-Christmas and New Year level, he said.

This means that the price hike was seasonal because farmers and poultry breeders capitalized "on the momentum to reap a profit," he said.

"So, let our farmers reap a profit from there," he said.

Compared to the previous years, food inflation volatility in 2021 was relatively lower, he said.

Food inflation volatility was recorded at 3.20 percent in 2021, lower than 3.62 percent in 2020, 4.30 percent in 2019, and 3.39 percent in 2018, he added. 

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