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BPS: Surabaya's inflation rate highest in East Java

2 September 2014 22:36 WIB

Patung Sura dan Baya di Surabaya. Dok. TEMPO/Darmaji

TEMPO.CO, Jakarta - Surabaya's inflation rate is recorded at 0,50 percent, the highest on record for East Java in 2014, exceeding the provincial average of 0.37. According to the Central Statistics Agency (BPS) of East Java, Surabaya's inflation rate is unusually high, given the city administration's known capability to control inflation rates in previous months.

"There are two factors that fueled the increasing inflation rate in the city: electricity rate hikes and the education costs," said East Java BPS Chief, M. Sairi Hasbullah at his office on Monday, 1 September 2014.

The electricity tariff hikes contributed to Surabaya's inflation rate by 26 percent, specially after factoring the 11 percent increase of R-3/TR tariffs for consumptions over 2,200 VA that came into effect on August 2014. "Surabayans consume a significantly higher amount of electricity compared to other cities [in East Java], particularly because their incomes are much higher compared to residents of other cities in the region," said Safri.

Meanwhile, education costs raised inflation rate by four percent. "This is because August is the start of the school season," explained Safri.

Malang came in second place with an inflation rate of 0,47 percent, followed by Madiun (0.35 percent) and Sumenep (0,31 percent), while Probolinggo and Kediri led the other end of the scale with inflation rates of 0,07 percent and 0,06 percent, respectively.

In anticipation of the central government's plan to reduce fuel subsidies, Surabaya's mayor Tri Rismaharini has advised residents to plant crops in their yards in order to help combat inflation. To support her plan, the Surabaya administration is providing free seeds and seedlings that residents could sow at their own convenience.

According to Safri, Mayor Risma's plan could be a viable alternative to assist with controlling inflation. "I can't say for sure whether her plan is effective or not, but it certainly has potential," said Sairi of the plan.

Sairi explained that around 65 to 70 percent of the average resident’s consumption budget is used to purchase vegetables. "If residents, especially underprivileged residents, could meet their own demands for vegetable, it could have a significant impact on inflation rates," he said.

ARTIKA RACHMI FARMITA



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