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Inflation in disaster-hit Sumatra eases as distribution recovers: govt

Jakarta (ANTARA) – Home Affairs Minister Tito Karnavian stated that monthly inflation (month-to-month) in three disaster-affected provinces in Sumatra has shown improvement as the distribution of goods and services recovers. He noted that this improvement indicates that efforts to normalize social and economic infrastructure have contributed positively to supply availability and the control of basic commodity prices. “This means that the ongoing efforts to normalize Aceh, West Sumatra, and North Sumatra in controlling the prices of goods and services have been quite effective, as more supplies are now coming in,” he said during the Inflation Control Coordination Meeting in Jakarta on Monday. Karnavian explained that West Sumatra and Aceh each recorded monthly inflation of 0.04 percent, while North Sumatra experienced a deflation of 0.13 percent. In Aceh, annual inflation was previously quite high due to distribution disruptions, such as road closures and supply bottlenecks. Nevertheless, monthly indicators show that the situation is improving as distribution networks recover. This improvement signals that supply availability and distribution flows in the affected areas are starting to stabilize. The minister underscored the importance of maintaining this momentum by monitoring inflation components and bolstering coordination between the central and regional governments. According to him, monthly inflation indicators provide a more accurate reflection of current conditions than year-on-year (YoY) figures for price control purposes. Nationally, annual inflation declined from 4.76 percent to 3.48 percent, while monthly inflation dropped from 0.68 percent to 0.41 percent. The improvement is driven by, among others, normalization of electricity tariffs and increased mobility during long holidays that affect the food, beverage, and transportation sectors. Aceh, North Sumatra, and West Sumatra were previously hit by heavy rainfall-triggered floods and landslides in late November 2025. According to the National Disaster Mitigation Agency (BNPB) records, the disasters claimed 1,207 lives and damaged over 300,000 homes.