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Flight Fares to Affect Inflation Rate

In the last two months, the imposition of tariffs on plane tickets from several airline companies is estimated to effect inflation rates in the country. Darmin Nasution, the Coordination Minister for Economic Affairs, has stated that the effect will be quite insignificant. He also stated that plane ticket prices have also been considered to contribute quite significantly on inflation rates during the last five years. However, he is still not able to confirm the percentage amount of these effects on inflation rates. He suggested for the public to wait for official data and announcement from the Central Body of Statistics or Badan Pusat Statistik (BPS).

Darmin explained that in the last four years, there have been three factors affecting the rates of inflation. First, the highest contributor to the inflation rates still remains to be food prices. The second contributor is plane ticket prices, while the third and last contributor comes from the education sector. However, on certain seasons, such as Christmas, New Year, and Eid Al-Fitr, plane ticket prices are usually the first contributor to inflation rates. In the midst of all this, Darmin judged that the increase in plane ticket prices by airline companies are still fair and appropriate, as long as it will not violate the tariff range that have been set by the Ministry of Transportation. He believes that airline companies should remain responsible in following these tariff ranges.


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Yusuf Rabiultsani
Yusuf Rabiultsani

Nice content!

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