Trade

Indonesia records 0.18 percent deflation in September

For the second successive month, Indonesia recorded deflation, with the figure for September at 0.18 percent, higher than 0.05 percent deflation the previous month, Statistics Indonesia (BPS) announced on Monday.

The latest figure brings year-to-date (ytd) inflation to 1.94 percent, while year-on-year (yoy) inflation stands at 2.88 percent.

September’s deflation was also in contrast with 0.13 percent and 0.22 percent inflation seen over the same period in 2017 and 2016, respectively.

The government has set a target of keeping inflation between 2.5 and 4.5 percent this year, as outlined in the 2018 state budget.

Food prices have been the largest contributor to deflation, with a deflation of 1.62 percent in September, contributing 0.35 percent to the overall deflation.

Among the food items whose prices have seen a reduction are chicken, shallots, fish and eggs, among other food items, while the prices of rice and potatoes slightly increased over the same period.

“The deflation was mainly a result of better management of food prices,” said BPS head Suhariyanto in Jakarta on Monday.

The education, recreation and sport category recorded 0.54 percent inflation in September as public spending on university and academy tuition increased last month.

Meanwhile, core inflation stood at 0.16 percent last month, while volatile prices deflated by 1.84 percent over the same period.

Fluctuations in administered prices, which saw a price increase in kretek (clove) cigarettes, which was offset by a decline in airline tariffs, meant that the category did not contribute significantly to the consumer price index last month. (bbn)

The Jakarta Post

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