Indonesia records inflation of 0.09% in April

JAKARTA (TheInsiderStories) – Indonesia recorded slight increase of Consumer Price Index (CPI) in April 2017 by 0.09 percent month-to-month (mtm), driven by the decreasing price of staple foods which compensate the increasing price of electricity price, the Central Statistics Agency (BPS) announced.

Staple food group became the only one group which contributed the deflation in April at 1.13 percent while the housing, water, electricity, gas, and fuel still contributed inflation of 0.93 percent.

BPS recorded that processed food, cigarette, beverage and tobacco rose 0.12 percent; clothing rose 0.49 percent; health products increased 0.08 percent; education, recreation and sport rose 0.03 percent; and transportation, communication and financial services rose 0.27 percent.

In general, the year-on-year (yoy) inflation in April was recorded at 4.17 percent while inflation year-to-date (ytd) was at 1.28 percent.

“The inflation was very slight and in line with the expectation,” Head of BPS Kecuk Suhariyanto said at press conference on Tuesday (May 02).

Some staple foods that contributed the deflation are red and small chili, red onion, meat, fish, egg, vegetables, and cooking oil while white onion, chicken meat, tomatoes, and orange contribute the inflation. The increasing electricity prices of 900 VA push inflation at 0.2 percent.

The core inflation in April was relatively stable at 0.13 pecent mtm and 3.28 percent yoy. While the inflation of volatile food also stable at 1.28 percent mtm and 2.66 percent yoy.

BPS warned the government to monitor closely the inflation of administered prices which rose 1.27% mtm and 8.58 percent yoy respectively in April. (RF)