Aceh’s inflation remained the highest in Sumatra in October, Bank Indonesia’s Aceh representative office head Agus Chusaini said on Thursday. Aceh’s annual inflation stood at 5.05 percent in October, with a monthly rise of 0.13 percent.
Chusaini spoke at a Forum Group Discussion in Sabang. He said Aceh was no longer first in Indonesia for inflation, but was still first in Sumatra.
Rice with side dishes drives the gap
Chusaini attributed the pressure mainly to rice with side dishes, a staple whose prices he said tend to fall only slowly. Once they rise, they rarely come back down, he said.
Chili also contributed to inflation in the province. Aceh produces chili, but prices still climb when supply falls, and they stay low only when supply is plentiful.
Price stickiness in focus
The comments point to a gap between how quickly food prices rise and how slowly they retreat.
Source: Bank Indonesia
