Weather Influences Inflation in Bali


The weather change affects on the rainy season, high sea waves, causing disruption of food production, distribution lines and one of its effects is the rise in prices or inflation in Bali.

“Bali that gets a lot of tourist arrivals both domestic and foreign, dependence on food so most of the foods are supplied from outside the area,” said Deputy Director of the Representative Office of Bank Indonesia region III, Suarpika Bimantoro in Denpasar, on Saturday.

Inflation of foods commodities is one aspect to be monitored by the Bank of Indonesia, considering its large influence in the formation of overall inflation and all is the result of Price Monitoring Survey (SPH).

He mentioned that these observations indicated an increase in prices due to the high rainfall that hamper agricultural productivity and high waves blocking the distribution of food commodities.

Observing these developments, Bank Indonesia expects inflation in Bali in January 2014 were in the range 0.9 -1.25 percent (month to month), then this area annual inflation (January 2013 – January 2014) will be in the range of 6.8 percent (yoy) to 7.2 percent (yoy).

One of the commodities predicted bringing quite large inflation pressure is fishery commodity. Strong winds caused high waves of the sea, which made it difficult for fishermen to maintain the productivity.

The decline in marine fish catches led to high price. Fishery commodity price increases will affect Bali inflation rate given the weight of this commodity sub is quite large, reaching a total of 0:03 of the existing weights.

Disrupted distribution of goods between islands also brings inflation pressure in early 2014, due to delays in the supply of goods. This situation does not only occur on agricultural commodities but also includes processed food commodities.

He said that Bank Indonesia along with other agencies that are members of the Regional Inflation Control Team (TPID) seeks to synergize the steps to anticipate rising inflation.

In addition to the action, the role of the society as the doer of economic activity is needed to support measures to control inflation. Society as economic actors has to control demand as controlling inflationary pressures.

“Various steps can be done of course with the hope to make effective efforts to control inflation and keep encouraging additional production, so as to improve the welfare of the society,” he said.

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