Medium Rice Prices Increased by almost Rp. 200 per kg in December 2018

LiputanNet. The Central Statistics Agency (BPS) noted that the average price of medium quality rice in December 2018 rose by around Rp194 per kilogram (kg) or 2.03 percent compared to the previous month to Rp9,798 per kg. The price increase also occurred in premium and low quality rice, respectively 0.48 percent and 0.07 percent to Rp9,818 per kg and Rp9,432 per kg.

On average, the price of all types of rice at the wholesale level in December 2018 rose by 0.77 percent. While at the retail level, the average price of rice rose by 0.8 percent.

BPS Head Suhariyanto said the increase occurred because there was an increase in prices at the level of farmers and mills. Recorded, the price of Dry Grain Harvest (GKP) at the farm level rose 2.35 percent to Rp 5,237 per kg. While the price of Dry Grain (GKG) at the grinding level rose 1.19 percent to Rp. 5,330 per kg.

"The movement of fluctuations is increasing because it has not been harvested, usually later when the harvest begins to decline if there is no shift in harvest time," he said at the BPS Office on Wednesday.
In detail, the highest price of dry grain at the farm level reached Rp7,333 per kg in West Sumatra and the lowest was Rp.3,800 per kg in Jambi. While the price of grain at the grinding level, the highest reached IDR 6,640 per kg in Jambi and the lowest was IDR 3,800 per kg in West Java.

Nevertheless, he said the increase in rice prices was still quite reasonable considering that demand usually increases at the end of the year.

"When viewed, the price increase at the wholesale to retail level is still relatively small. But in the future, policies need to be more able to keep prices stable," he said.
While the share of rice consumption in inflation throughout 2018 reached 0.13 percent. While inflation over the past year reached 3.13 percent. Rice is the second highest contributor to inflation after gasoline.

After rice, the highest share of inflation was given by filter clove cigarettes, chicken meat, fresh fish, air freight rates, house rental rates, shallots, rice with side dishes, and clove cigarettes.

"This year, the share of rice in inflation has increased when compared to last year, where rice was in fifth position which contributed to inflation," he concluded.

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