Part 5/8:
The geopolitical and economic factors contributing to these rising prices are complex. Indonesia experienced a record high inflation rate of over 8.4% in a recent month, driven by increased food prices especially during Ramadan. The holy month, marked by heightened demand for festive foods, tends to push prices upward due to increased consumption.
Additionally, existing challenges in Indonesia's agriculture sector compound the problem. Stagnant productivity, dwindling supply, and external factors like global economic instability have led to higher import costs, which are often passed on to consumers.