On Monday, November 27, 2023, in the technical room of BPS Tegal Regency, the Ngangenin Monday activity took place with the theme Inflation and IPH (Price Development Index). This activity was filled by the speaker Moh. Bakhtiar Helmi, S.ST, Junior Expert Statistician of BPS Tegal Regency.
Inflation is a general and continuous increase in prices that causes a decrease in people's purchasing power. There are three sources of inflation, namely more demand than supply, rising production costs, and subjective factors of economic actors such as expectations, speculation, and government policies.
To measure inflation, BPS uses the Consumer Price Index (CPI) which reflects changes in the prices of goods and services consumed by households. The CPI is divided into 11 expenditure groups, namely foodstuffs, processed food, beverages, cigarettes and tobacco, clothing, housing, water, electricity, gas and fuel, equipment, appliances and routine household maintenance, health, education, recreation and sports, transportation, communication and financial services, and other groups.
IPH is an index that measures changes in the prices of 20 food commodities that have a large weight in the CPI and can be influenced by local government policies. IPH uses weights from expenditure results in the National Socio-Economic Survey (Susenas) of Tegal Regency. If there were IPH commodities that were not available in the Susenas, then sister city CPI weights were used for those commodities, which are the CPI weights of cities/districts that have similar consumption characteristics to Tegal Regency.
IPH has several advantages, such as being able to be controlled in the short term, can be used as a means of evaluating the performance of regional heads in controlling inflation, and is easy to calculate and understand. IPH is calculated by BPS RI with data sources from the local trade office, in this case the Trade, Cooperatives and SMEs Office of Tegal Regency.
The 20 commodities included in the IPH calculation are rice, purebred chicken meat, eggs, shallots, red chili, cayenne pepper, cooking oil, granulated sugar, garlic, beef, wheat flour, milkfish, kale, bananas, and oranges. Each commodity has its own weight, with the largest weights being rice (28.50%), broiler chicken meat (10.14%), and eggs (7.86%).
The IPH is expected to assist local governments in controlling inflation and maintaining the stability of food prices. IPH can also be an indicator of community welfare, as food is a basic need that must be met. IPH can also be an input for the central government in formulating macroeconomic policies that have an impact on inflation. (Wind)
