Indonesia March Inflation Rate Stands at 0.11%
Statistics Indonesia reported the inflation rate in April lowered to 0.08 percent compared to March 2020 at 0.1 percent, said the head today (05/04) - Photo: Special

JAKARTA (TheInsiderStories) – Statistics Indonesia reported the inflation rate in April lowered to 0.08 percent compared to March 2020 at 0.1 percent, said the head today (05/04). Year to date the inflation rate rose to 0.84 percent from last month at 0.76 percent.

In annual basis declined from 2.96 percent to 2.67 percent in this month. The core component in April 2020 experienced inflation of 0.17 percent.

“In April 2020 there was an inflation of 0.08 percent with the Consumer Price Index (CPI) of 104.80. Out of 90 CPI cities, 39 cities experienced inflation and 51 cities experienced deflation,” said said head of the agency, Suhariyanto in a video conference.

The highest inflation occurred in Baubau by 0.88 percent with CPI of 103.16 and the lowest occurred in Cirebon, Depok and Balikpapan with 0.02 percent each with CPI of 102.74, 105.84, and 103.27. The highest deflation occurred in Pangkalpinang by 0.92 percent with CPI of 102.31 and the lowest occurred in Bogor and Semarang respectively by 0.02 percent with CPI of 105.93 and 104.86 respectively.

He said, the inflation happened due to price increases of food, beverage and tobacco group by 0.09 percent. Then, clothing and footwear group of 0.04 percent. Housing, water, electricity and household fuels by 0.09 percent. Household appliances, equipment and routine maintenance by 0.09 percent.

In addition, health group of 0.23 percent. Recreation, sports, and culture group of 0.03 percent. Food and beverage also restaurant supply group by 0.18 percent. And personal care and other services by 1.20 percent.

The expenditure group that experienced deflation was transportation group by 0.42 percent and the information, communication and financial services group by 0.34 percent. While, the expenditure group that did not change was the education group.

Early, governor of Bank Indonesia (BI), Perry Warjiyo, sees the inflation in March lowers than previous month caused the deflationary in some commodities. In February the inflation rate stood at 0.10 percent and in annual basis at 2.96 percent

“We expect inflation to be 0.13 person month to month and year on year 3 percent. A number of deflationary commodities, but there are those that encourage inflation like jewelry, red onion and others,” he told media on April 9.

Warjiyo said, the central bank target to controlled the inflation within the target range, safe external stability, and as a pre-emptive step to maintain the momentum of domestic economic growth amidst the prospects of global economic recovery in connection with the occurrence of COVID-19.

He adds, the monetary operations strategy continues to maintaining adequate liquidity and supporting the transmission of an accommodative policy mix. Beside, accommodative macro-prudential policies were taken to encourage economic financing in line with the sub-optimal financial cycle while still observing the precautionary principle.

To keep inflation remaining within the target range of 3.0±1 percent, the government and BI agreed to maintaining volatile food inflation in the range of 4.0±1 percent. To reached the target, the parties agreed to strengthening price affordability, supply availability, smooth distribution, and effective communication, especially ahead of the national religious holidays.

Both also aimed to strengthening agricultural institutions, accompanied by capacity building, financing and development of digital agricultural ecosystems, including synchronizing programs and data.

Then, support the management of public expectations and strengthening the coordination of the central and regional governments in controlling inflation through the holding of the National Coordination Meeting for Inflation Control in June 2020.

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