Indonesia Post Deflation 0.08% In February 2019
Source: Statistic Indonesia

JAKARTA (TheInsiderStories) – Indonesia recorded deflation of 0.08 percent in February over the previous month (2.57 percent y/y), with the Consumer Price Index (CPI) of 135.72. Of the 82 CPI cities, 69 cities get deflation and 13 cities get inflation, told Indonesia Statistic today (03/01).

The highest deflation occurred in Merauke at 2.11 percent with CPI of 138.03 and the lowest occurred in Serang at 0.02 percent with CPI of 145.88. While the highest inflation occurred in Tual at 2.98 percent with CPI of 159.05 and the lowest occurred in Kendari at 0.03 percent with CPI of 129.36.

The deflation caused by the decrease in prices as indicated by a decrease in some expenditure group indices, namely: the foodstuffs group at 1.11 percent. While the expenditure groups that experienced an increase in the index were: processed foods, beverages, cigarettes and tobacco by 0.31 percent; housing, water, electricity, gas and fuel by 0.25 percent; clothing by 0.27 percent; health by 0.36 percent; the education, recreation and sports by 0.11 percent; and the transportation, communication and financial services by 0.05 percent.

Meanwhile, the inflation rate for the calendar year (January-February) 2019 is 0.24 percent and the year-on-year inflation rate (Feb. 2019 to Feb. 2018) is 2.57 percent. The core component in February 2019 experienced inflation of 0.26 percent.

The inflation rate for the core component of the calendar year (January-February) 2019 is 0.56 percent and the inflation rate for the core component year-on-year (February 2019 to February 2018) is 3.06 percent.

Statistics reported that the General Non-Oil/Gas Wholesale Price Index or wholesale/agent price index in February fell by 0.34 percent from the previous month. The highest decline occurred in the Agriculture Sector at 2.26 percent, triggered by a decline in commodity prices including red chili, cayenne pepper, tomatoes, broiler chicken, shallots, chicken meat, iron and steel imported.

Meanwhile, Building Material/Construction Index in Feb. 2019 rose by 0.11 percent against the previous month, caused by increases in commodity prices for toilets, sinks and the like; sand; plywood, plywood, and the like; roof tiles and other roofs; and floor tiles. The domestic sector contributed 0.16 percent. Meanwhile, the international trade group contributed a negative share of 0.16.

More than that, the national Farmer Exchange Rate (FER) in Feb. 2019 was 102.94, down 0.37 percent compared to the previous month’s FER. The decline in FER is due to the decrease in the Price Index of Farmers by 0.53 percent, which is greater than the decrease in the Farmer Paid Price Index by 0.16 percent.

In February 2019, Riau Province’s FER experienced the highest increase (1.58 percent) compared to other provincial FER increases. In contrast, the Central Sulawesi Province FER experienced the largest decline (1.47 percent) compared to the decline in other provincial FERs.

Furthermore, the national Agricultural Household Exchange Rate in Feb. 2019 was 111.18 or down 0.73 percent compared to the previous month. Of 1,323 grain sales transactions in 28 provinces during February 2019, there were 72.11 percent of harvested grain transactions, 11.19 percent of milled dry grain, and 16.70 percent of low quality grain.

Compared to February 2018, the average price in Feb. 2019 at the farm level for all qualities decreased by 1.79 percent, 2.23 percent and 2.94 percent respectively.

Statistics also reported that the number of foreign tourist arrivals or tourists to Indonesia in January 2019 increased by 5.22 percent compared to the number of visits in January 2018, namely from 1.10 million visits to 1.16 million visits. Meanwhile, when compared to Dec. 2018, the number of foreign tourist visits in January 2019 decreased by 17.6 percent.

The latest, there was a rural deflation in Indonesia of 0.29 percent in Feb. 2019, caused by a decrease in the index in the food expenditure group.

Written by Daniel Deha, Email: daniel@theinsiderstories.com

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