Indonesia's monthly inflation reading for November came in at 0.14 percent, went up from 0.02 percent in the prior month - Photo by InsiderStories

JAKARTA (TheInsiderStories) – Indonesia’s monthly inflation reading for November came in at 0.14 percent, went up from 0.02 percent in the prior month, Statistics Indonesia showed today (12/02). While the annual inflation rate decreased to 3.0 percent in November from 3.13 percent in the previous month, as the price of most of the expenditure group index increased.

November’s annual inflation rate remained between the Bank Indonesia’s (BI) 2.5-4.5 percent target range. The annualized core figure arrived at 3.08 percent from 3.20 percent previous and 3.14 percent expected. The core component in November experienced inflation of 0.11 percent.

“The Consumer Price Index (CPI) in November was 138.60. From 82 cities monitored, 57 cities of inflation and 25 cities of deflation. The highest inflation occurred in Manado at 3.30 percent with CPI of 140.99 and the lowest occurred in Malang of 0.01 percent with CPI of 136.92,” head of statistics agency Suhariyanto said in a press conference in Jakarta.

While the highest deflation occurred in Tanjung Pandan of 1.06 percent with CPI of 146.21 and the lowest occurred in Batam and Denpasar of 0.01 percent with CPI of 137.96 and 133.54, respectively, according to Suhariyanto.

The agency said inflation occurred because of the prices of most expenditure group index increased, such as the foodstuffs group by 0.37 percent; processed foods, beverages, cigarettes, and tobacco by 0.25 percent; housing, water, electricity, gas and fuel by 0.12 percent; clothing group by 0,03 percent; health group of 0.23 percent; and the education, recreation and sports group by 0.02 percent.

While the expenditure groups that experienced a decrease in the index were transportation, communication, and financial services by 0.07 percent, the statistics bureau showed.

Meantime, the non-oil and gas general trading price index rose by 0.07 percent compared to the previous month. The highest increase occurred in the Industrial Sector by 0.37 percent, the agency said. Some commodities that experienced an increase in prices included oranges, shallots, palm oil, chicken, palm oil, chicken meat, and clove cigarettes.

Then, the index of building or construction materials rose by 0.07 percent from the previous month, partly due to increases in commodity prices for brick, sand, tile and other roofs, construction equipment, and paints and primers, the agency data showed.

While the general index rose 0.06 percent in October against the previous month. The imported goods group was the dominant contributor, namely 0.16 percent. Whereas the group of imported goods in October rose by 1.04 percent and the group of exported goods fell 0.75 percent against the previous month, according to the agency.

Previously, BI predicted November inflation to be around 3.04 percent annually. While monthly inflation was 0.18 percent and calendar inflation was 2.41 percent year to date. The governor Perry Warjiyo said inflation was caused by an increase in some food items such as shallots by 0.08 percent, pedigree chicken by 0.05 percent and several other commodities.

“Until the end of the year inflation was around 3.1 percent. In December it usually fits a seasonal pattern because the end of the year and religious holidays are therefore rising,” he told reporters last week.

According to the governor, the inflation forecast was based on the results of the BI’ Price Monitoring Survey in the third week of November. Also recorded were some food items that experienced a price decline that contributed to deflation, such as red chilies down 0.07 percent and cayenne peppers down 0.02 percent.

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