UNAIR NEWS – More news regarding the inflation for staple food prices headlining the New Year’s coverage in 2022. The rising demand not accompanied by adequate supply is influential to staple price on the market. Consequently, the rising prices caused anxiety in public.
An economist of the Faculty of Economics and Business Universitas Airlangga (UNAIR) Dr. Rudi Purwono, SE., M.SE. stated that the decrease of stock from the producer is the cause for this staple price inflation.
“This inflation at the beginning of the year was caused by the chili, egg, and cooking oil price increase commonly caused by a disruption in the supply chain,” Rudi stated.
Then, will this staple price rise result in the public consumption trend over the coming year? Rudi argued that as economic growth strengthens and inflation is still stable, it could be concluded that consumption will lead to recovery.
The Department of Economics lecturer FEB mentioned that the inflation trend in 2021 is higher than in 2020. But compared to 2019, inflation on 2020-2021 is still lower.
“There is a slowdown in real consumption reflected in low inflation. However, there is a recovery in the economic rate in 2021 compared to the previous year,” said Rudi.
Ideally, added Rudi, inflation must be carried out stably and controlled, meaning it is not fluctuating and still in a range set by Bank Indonesia, that is 3%±1. “This inflation is also needed by the business world because it is not a pressure in the business world which at the end will implicate to worker benefit in tough times,” he added.
Economic recovery signs showed an indication of economic activities’ rise in 2022. In December 2021, ADB (Asian Development Bank) projects inflation from 2022 to reach 2,7 percent, which is still in the range of Bank Indonesia. “Even in Covid-19 Pandemic, structurally, Indonesian economic condition is relatively strong,” Rudi added.
Communities from different layers have a part in the current Indonesian economic recovery. Rudi reminded the public to buy more local products than imported products. “Indonesia has an enormous domestic market. If we buy local products by the work of our countrymen, therefore our economy will be stronger,” he expressed.
Considering the Covid-19 situation does not seem to end pretty soon and new Omicron variant findings, Rudi advised that the publics follow health protocols. “It will reduce the risk of us experiencing disruption in the economy,” he explained.
For people who haven’t got their Covid-19 vaccine shots, Rudi reminded them to get the vaccine at the nearest health services as soon as possible.
About the unpredicted spread of Covid-19, Rudi suggests that people save or invest as a precautionary motive. “For people struggling in their business, the government has various assistance schemes, and people have to be proactive in utilizing that assistance,” he concluded.
Author: Agnes Ikandani
