Indonesia’s Economic Shrank at 0.52% in 1Q 2019
Chief of Indonesian Statistics Suhariyanto.

JAKARTA (TheInsiderStories) – Indonesia booked 0.12 percent month-to-month inflation in August, easing from a 0.31 percent gain in the prior month, particularly due to an increase in prices as indicated by the most indexes of the expenditure group, Statistics Indonesia announced today (09/2).

While annual inflation rate increased to 3.49 percent in August from 3.32 percent in the previous month, and the inflation rate for the calendar year (January-August) is 2.48 percent. This was the highest inflation rate since December 2017.

Furthermore, annual core inflation came in at 3.30 percent, the highest since March 2017, and the core component in August experienced inflation of 0.43 percent. The inflation rate for the core calendar year components (January-August) is 2.32 percent

“In August there was an inflation of 0.12 percent with the consumer price index (CPI) of 138.75. Of 82 cities, 44 cities experienced inflation and 38 cities experienced deflation,” Head of Statistics Agency Suhariyanto said in a press conference in Jakarta.

Suhariyanto went on by saying that the highest inflation occurred in Kudus by 0.82 percent with a CPI of 144.56, and the lowest occurred in Tasikmalaya, Madiun, and Pare-Pare each by 0.04 percent with a CPI of 134.58, 134.52 and 132.02 respectively.

While the highest deflation occurred in Bau-Bau of 2.10 percent with CPI of 136.38 and the lowest occurred in Tegal and Palopo each by 0.02 percent with CPI of 134.22 and 136.35 respectively.

Suharyanto said, inflation occurred due to an increase in prices as indicated by the increase in most indexes of the expenditure group, namely: the processed food, beverages, cigarettes, and tobacco group by 0.26 percent; housing, water, electricity, gas and fuel by 0.23 percent; clothing group by 0,88 percent; health group of 0.59 percent; and the education, recreation and sports group by 1.21 percent.

While expenditure groups that experienced a decrease in the index, namely: the foodstuffs group by 0.19 percent and the transportation, communication, and financial services group by 0.55 percent.

“With inflation conditions like this, it means that it is still below the government’s target. But this is still under control because of various programs carried out by the government,” he said.

Previously, Bank Indonesia sees the inflation in August was in the range of 0.15 percent with the annual inflation is at 3.47 percent year on year (YoY). Based on the survey monitoring prices until the fourth week of August, inflation is estimated to be 0.15 percent month-to-month, said the governor Perry Warjiyo on Friday.

Meanwhile, the general non-oil and gas wholesale trade index or the wholesale / agent price index rose by 0.14 percent from the previous month. The highest increase occurred in the non-oil and gas export goods group by 0.54 percent. Some commodities that experienced price increases include red chili, cayenne pepper, palm oil, cattle, goats and sheep, as well as export animal/vegetable fats and oils.

Furthermore, building/construction materials rose by 0.08 percent from the previous month, partly due to increases in the prices of Uruk, Bamako, tile and other roofing commodities, gravel and natural situ, and cement.

While the national farmer exchange rate in August was 103.22, up 0.58 percent compared to the previous month. The increase was due to the farmers received price index which rose by 0.69 percent, higher than the increase in the farmers paid price index of 0.11 percent.

Written by Lexy Nantu, Email: lexy@theinsiderstories.com