Indonesia Posts Inflation 0.31% in July

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) – Statistics Indonesia reported the inflation rate went up 0.31 percent in July 2019, slowing from a 0.55 percent gain in the prior month. An annual basis, the inflation rate inched higher to 3.32 percent from 3.28 percent in the previous month. While the inflation rate for the calendar year (January-July) is 2.36 percent.

Head of Statistics Agency Suhariyanto said on Thursday (08/01), the soaring education costs, high gold prices, and commodity prices made the inflation in July 2019 above market expectations.

“The core inflation reached 0.33 percent, rise cause of the increase in gold prices by 0.03 percent. In addition because of the increase in prices of red chili, cayenne pepper, gold, and high school tuition,” he explained.

The food prices contributed the largest share 0.17 for July’ inflation. Red chili has a share of 0.20 percent and cayenne pepper 0.06 percent. On the other hand, there was a decline in the price of foodstuffs, including shallots 0.04 percent and garlic 0.02 percent.

Furthermore, processed food contributed 0.24 percent to inflation. Then the housing, water, electricity, gas and fuel group experienced inflation of 0.14 percent. The clothing group also contributed July inflation of 0.70 percent.

Previously, the Government and Bank Indonesia (BI) agreed on three strategic steps to keep inflation within the target range of 3.5±1 percent in 2019.

Firs steps, the officials said, its to maintain price affordability, supply availability, smooth distribution, and effective communication. In the National Inflation Control Roadmap 2019-2021, the policy is pursued by giving priority to availability of supply and smooth distribution, which is supported by a more conducive ecosystem and the availability of accurate data.

Second, strengthening the implementation of the National Inflation Control Roadmap 2019-2021 and also implementing the Roadmap for Inflation Control at the Provincial level. And third, strengthening the coordination of the central and regional governments in controlling inflation through the holding of the National Inflation Control Coordination Meeting.

According to the BI the inflation rate in the last four years has been positive. This is supported by the synergy of monetary and fiscal policies in managing healthy macroeconomic conditions and structural policies, including infrastructure development in various regions that improve connectivity and smooth distribution.

Going forward, the government at the central and regional levels also the central bank will continue to strengthen policy coordination to bring inflation in a downward trend in the range of 3±1 percent in 2020 and 2021, so it can support strong, sustainable, balanced and inclusive economic growth.

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