Jakarta Experiences The First Deflation in 2022

Along with the resurgence of COVID-19 pandemic with the Omicron variant in February 2022, prices in Jakarta were observed to fall, which led to the first deflation of the year. The price correction of several commodities, which had risen sharply in the previous month, triggered Jakarta deflation of 0.05 percent.
This month deflation mainly came from the food, beverage and tobacco categories. The decline in the price of cooking oil, chicken, broiler eggs, cayenne pepper, and red chili contributed significantly to the deflation rate.
However, the deflation rate was hampered by the rising prices of several other commodities. The increase in air transport fares, the price of tomatoes and bananas, as well as some prepared foods such as ready-to-eat meatballs and fried chicken were able to reduce deflation to a low level.
In general, Jakarta deflation rate was quite under control. Among 53 observed cities in Indonesia that experienced deflation, Jakarta ranked 44th in the highest deflation order. This shows that Jakarta deflation was relatively low compared to other cities.