Global Price Transmission

Prices of a number of basic necessities have skyrocketed. This phenomenon has given a signal for the transmission of rising global food prices to local food commodities.

Kompas/Wawan H Prabowo

Vegetable traders serve chili buyers at the Kebayoran Lama Market, Jakarta, Sunday (12/26/021). Five days before the turn of 2021 to 2022, a number of prices for vegetables and other basic needs have increased.

The prices of a number of staple foods, such as cooking oil and red chilies, were out of control during this Christmas. The Trade Ministry recorded that the staple food commodities whose prices had soared were cooking oil, red chilies, broiler eggs and red onions. As of 24 December 2021, the price of bulk cooking oil rose 3.49 percent on a monthly basis to Rp 17,800 per liter, above the highest retail price of Rp 11,000 per liter (Kompas, 27/12/2021).

The above-mentioned price spike is only a partial portrait of the existing problem. The drastic increase in prices has actually been warned by various circles since a few months ago. The warning is related to the upward trend in the global food price index issued by the United Nations Food and Agriculture Organization (FAO).