North Sumatra Inflation Hits 0.43% in August

RRI.CO.ID, Jakarta - North Sumatra recorded monthly inflation of 0.43% in August. This shows a significant monthly increase in prices.

As previously projected, poultry made the largest contribution to inflation compared to other commodities. Inflation could rise further in September as several commodities are expected to push prices higher.

The commodities to watch in September are poultry, red chilies, and green chilies. All three already contributed to inflation in August, but their prices could rise further this month.

The risk is especially high for chilies as the harvest season in Batubara comes to an end. Lower supply could put further upward pressure on chili prices.

Chicken prices are already high, which could reduce demand and eventually push prices lower. However, higher feed costs, especially corn, remain a concern.

Corn is currently selling at around IDR 6,250 per kilogram, up from its lowest level of IDR 6,000 per kilogram in 2026. Supply is also expected to decline over the next two weeks, which could add further pressure.

Other commodities to watch include bulk cooking oil, beef, and sugar. Crude palm oil (CPO) prices are currently consolidating around MYR 5,000 per ton, reaching their highest level since December 2024 and making cooking oil production more expensive.

Sugar prices could also rise as the sugarcane milling season in North Sumatra has ended. Meanwhile, beef prices could increase as cattle prices continue to rise and consumers may shift to beef as chicken becomes more expensive.

Other commodities are also unlikely to see significant price declines in September. Prices for household and personal care products, in particular, are expected to remain relatively stable.

Writer: Gunawan Benjamin (Economist, Islamic University of North Sumatra)