Customer shops at traditional market. Wet markets and traditional grocery shops are holding on to customers in rural areas and small towns, but they are losing ground in larger towns and cities. (Photo: The Insider Stories)

JAKARTA (TheInsiderStories)— Again, Indonesia recorded deflation  0.18 percent in September followed the August deflation 0.05 percent, Statistics Indonesia reported on Monday (01/10). In annual basis, there will be 3.055 percent with annual core inflation at 2.86 percent from 3.20 percent in August.

According to the Statistic Indonesia Chief Suhariyanto of the 82 cities monitored by the agency, there are 52 cities of deflation and 30 cities of inflation. The low inflation is in line with the Bank Indonesia that estimated inflation remains within its target this year at 2.5-4.5 percent.

“In addition, rural areas experienced a very deep deflation of 0.59 percent,” he added.

Suhariyanto explained the inflation data is on the track and inline with government’ target 3 percent +/- 1 percent.

However, the low inflation also indicated the weak people’s purchasing power. Southeast Asia’s biggest economy recorded 4.95 percent in household consumption in 2017 or the lowest since 2010 that reflected low people’s purchasing power.

Written by Staff Editor, Email: theinsiderstories@gmail.com

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