Free Meal Program Helps Drive Indonesia’s August Inflation, BPS Says
Jakarta. Indonesia’s annual inflation accelerated to 3.19% in August from 2.28% a month earlier, partly driven by increased demand for chicken after the government’s free nutritious meal program resumed following the extended school holiday, the Central Statistics Agency (BPS) said on Tuesday.
Higher prices for bird’s eye chilies and rice also contributed to inflationary pressures during the month, according to BPS Deputy for Distribution and Services Statistics Ateng Hartono.
Ateng said demand for chicken increased in August due to several factors, including celebrations marking the Prophet Muhammad’s birthday and Indonesia’s Independence Day, as well as the resumption of the free nutritious meal program after the school holiday.
“There was an increase in demand for chicken in August due to the commemoration of the Prophet Muhammad’s birthday, Indonesia’s Independence Day, and also the free nutritious meal program after the school holiday period ended,” Ateng told a press conference in Jakarta.
Rising prices for staple foods also pushed Indonesia back into month-on-month inflation, with consumer prices increasing 0.21% in August after the country recorded deflation in July.
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