Statistics Indonesia reported the inflation rate went up 0.31 percent in July, slowing from a 0.55 percent gain in the prior month - Photo: Badan Pusat Statistik.

JAKARTA (TheInsiderStories) – Indonesia booked 0.02 percent month-to-month inflation in October with the Consumer Price Index (CPI) of 138.40, the statistics bureau showed today (11/01). The annual inflation rate slowed to 3.13 percent from 3.39 percent in the previous month, and annual core inflation eased to 3.20 percent from 3.32 percent a month earlier.

“The monitoring results in 82 cities occurred at 0.02 percent inflation. The inflation rate for the core calendar year components (January-October) is 2.22 percent and 3.13 percent on an annual basis,” head of statistics agency Suhariyanto said in a press conference in Jakarta.

Suhariyanto adding that out of 82 cities, 43 cities experienced inflation and 39 cities deflation. The highest inflation occurred in Manado by 1.22 percent with CPI of 136.49 and the lowest in Pematangsiantar, Tual, and Ternate with 0.01 percent with CPI of 140.89; 159.94; and 140.32, respectively.

“Meanwhile, the highest deflation occurred in Balikpapan 0.69 percent with CPI of 140.49 and the lowest in Palopo 0.01 percent with CPI of 136.35,” he said.

Suhariyanto went on by saying that inflation occurred due to an increase in prices as indicated by most indexes of the expenditure group, namely: the processed food, beverages, cigarettes, and tobacco group by 0.45 percent; housing, water, electricity, gas and fuel by 0.08 percent; clothing group of 0.08 percent; health group of 0.30 percent; and education, recreation and sports by 0.10 percent.

While expenditure groups that experienced a decline in the index, namely: the foodstuffs group by 0.41 percent and the transportation, communication, and financial services group by 0.08 percent.

Previously, Bank Indonesia (BI) sees the monthly inflation rate in October will reach 0.08 percent, fueled by an increase in the prices of purebred chicken meat, onions, and clove-blended cigarettes. So the annual inflation in the year to October will reach 3.19 percent (year-on-year).

The current inflation reflected the increasingly controllable prices of commodities, BI Governor Perry Warjiyo told reporters. The inflation target of 2.5 to 4.5 percent for this year will be reached and inflation will stay within the lower limit of the inflation target range of 2.5 to 3.5 percent, the central bank believed.

The controllable inflation forced the monetary authorities to slash their benchmark rate or 7-Day Reserve Repo Rate for the fourth time in a row, with the accumulation of one percent becoming five.

“Based on the result of observation conducted until October, the prices of commodities remained under control, thus confirming the Bank Indonesia inflation forecast for this year, God willing, remaining below the central target point of 3.5 percent,” Warjiyo said.

The price of purebred chicken recorded an inflation 0.06 percent, onion 0.02 percent, and clove- blended cigarette 0.02 percent, the survey also revealed. However, the prices of other commodities declined, including onion which recorded a drop of 0.06 percent, purebred chicken egg of 0.04 percent, birds eye chili of 0.03 percent, and air transport which witnessing a decrease of 0.02 percent.

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