JAKARTA (TheInsiderStories) – Indonesia posted inflation of o.42 percent compared to previous month 0.47 percent in November, led by staple food such as chili, housing, electricity and water price the Central Bureau of Statistic (BPS) announced. Year to date and on year-on-year basis, the inflation recorded 3.02 compared to the same period in 2015 3.25%.
Inflation occurs because of the increase in the price indicated by the increase some expenditure groups indices, namely: foodstuffs by 0.50 percent, processed foods, beverages, cigarettes and tobacco by 0.45 per cent; housing, water, electricity, gas and fuel by 0.18 percent; the health group at 0.32 percent; education, recreation and sports by 0.05 percent; and transportation, communication and financial services by 1.12 percent. While groups of expenditure deflation, namely the clothing group by 0.46 percent.
The core component in December 2016 experienced inflation of 0.23 percent. The rate of inflation core component of the calendar year and the inflation rate core components to the year respectively by 3.07 percent.
Finance Minister Sri Mulyani Indrawati said the lower inflation pushed by the fall of commodity prices and the government’s policy to lower the cost structure.