Statistics bureau reported Indonesia posted a deflation 0.10 percent in July 2020 with the Consumer Price Index of 104.95 - Photo by the Statistic Indonesia Office

JAKARTA (TheInsiderStories) – Statistics bureau reported Indonesia posted a deflation 0.10 percent in July 2020 with the Consumer Price Index (CPI) of 104.95. The country last experienced deflation in February 2019 at 0.08 percent.

The chairman, Suhariyanto said in a virtual conference, out of 90 cities, 61 cities experienced deflation and 29 cities booked an inflation. The highest deflation occurred in Manokwari by 1.09 percent with CPI of 107.21 and the lowest occurred in Gunungsitoli, Bogor, Bekasi, Luwuk and Bulukumba each by 0.01 percent with CPI of 103.29 each, 106.22, 106.98, 107.22, and 106.05.

He continued, the highest inflation occurred in Timika by 1.45 percent with CPI of 106.95 and the lowest occurred in Jember and Banyuwangi by 0.01 percent with CPI of 104.77 and 103.50, respectively.

Suhariyanto explained, the deflation occurred due to the falling prices as indicated by the decline in several indexes of the expenditure group like food, beverage and tobacco group by 0.73 percent. Then, housing, water, electricity and household fuels by 0.01 percent and transportation by 0.17 percent.

While, the expenditure groups that experienced an increase in the index were clothing and footwear by 0.09 percent. Household appliances, equipment and routine maintenance by 0.10 percent, health group of 0.29 percent, and information, communication and financial services group of 0.02 percent.

In addition, recreation, sports and culture group of 0.15 percent, education group by 0.16 percent, the food and beverage/restaurant supply group by 0.15 percent, and the personal care and other services group of 0.93 percent.

 The inflation rate in the calendar year (YTD) 2020 is 0.98 percent and the year-on-year inflation rate (YoY) is 1.54 percent. The core component in July 2020 experienced inflation of 0.16 percent. The core inflation rate is 1.03 percent YTD and the inflation rate for the core component is 2.07 percent YoY.

In the limited meeting today, President Joko Widodo urged his ministers to boost household consumption and purchasing power of Indonesian peoples. Until July, he saw the realization of government’ stimulus only 20 percent of the total funding Rp695 trillion (US$47.93 billion). The highest absorption was for social protection and micro, small, and medium enterprises assistance.

“The ministries budget also does not yet exist how to be realized. This means that in the institution there is no sense of crisis. I ask for this detail so that it is agile, fast, shortcuts, and more agile,” he shouted.

The COVID-19 has hampered the Southeast Asia biggest economy and lowered the people’ consumption to lowest level. Widodo’ administration was try to boost the purchasing power by launched a stimulus but so far there are no significant impact to the domestic economy.

US$1: Rp14,500

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