Inflation and Village Funds

Most of the current global inflation is caused by the increase in energy and food prices. Therefore, controlling energy and food prices is one of the keys to curbing inflation.

Inflation haunts the world. In September 2020, the annual inflation rates in the United States and Europe, which exceeded 8 percent and averaged 10 percent, respectively, were the highest in the last 40 years. Inflation in some other countries has even exceeded 50 percent, such as in Turkey (80 percent), Argentina (78 percent) and Iran (52 percent).

The ghost of inflation is also lurking in Indonesia. Statistics Indonesia (BPS) reported that the annual inflation rate in September 2022 was 5.9 percent, the highest since 2014. Although the inflation rate in Indonesia is not as high as in the countries mentioned above, the prices tend to increase following the rise in subsidized fuel (BBM) in the country.