Indonesia posted an inflation 1.68 percent during 2020 due to low purchasing power, the lowest level in history - Photo by the Statistic Bureau Office

JAKARTA (TheInsiderStories) – Indonesia posted an inflation 1.68 percent during 2020 due to low purchasing power, the lowest level in history, said the statistic bureau today. The amount also lower than previous year 2.72 percent.

“Its the lowest annual inflation rate since we released the inflation data,” said the deputy, Setianto, in a virtual conference, on Monday (01/04).

In detail, he explained, the inflation rate was recorded 8.36 percent in 2014. Then, in 2015 lowered to 3.35 percent, in 2016 was 3.02 percent, in 2017 slightly increased to 3.61 percent, and in 2018 fell to 3.13 percent.

In December alone, there was an inflation of 0.45 percent with the Consumer Price Index of 105.68. The number was higher than November, which was recorded at 0.28 percent and October at 0.07 percent.

He conveyed, the inflation occurred due to an increase in most of the expenditure group prices. The food, beverage and tobacco group rose by 1.49 percent and clothing and footwear group by 0.03 percent. Then, housing, water, electricity, and household fuels group of 0.03 percent.

Furthermore, equipment, tools and household routine maintenance group by 0.08 percent. In addition, the health group by 0.19 percent, the transportation group of 0.46 percent, and the food and beverage or restaurant supply group by 0.27 percent.

While, the the information, communication and financial services group by 0.01 percent also the recreation, sports, and culture group by 0.01 percent. Then, personal care and other services group 0.29 percent. The group that did not change was the education group, said Setianto.

The core component also experienced an inflation of 0.05 percent in December. On the calendar year the rate was 1.60 percent against 2019. In this year, Bank Indonesia projected that inflation rated will return to the target range of 3 percent plus minus 1 percent.

According to the governor, Perry Warjiyo, inflation rate could be lower than 2 percent. He said, there are a number of risks that need to be watched such as the domestic demand, the economic recovery, and the continuity of food distribution supply.

For this reason, a strong synergy between the central government and local governments, also various innovations in inflation control programs needs to be strengthened to ensure that inflation is maintained within the target range, he concluded.

Written by Editorial Staff, Email: theinsiderstories@gmail.com