Indonesia March Inflation Rate Stands at 0.11%
Head of Indonesia Statistics Suhariyanto.

JAKARTA (TheInsiderStories) – Indonesia recorded an inflation rate in March 2019 of 0.11 percent with a Consumer Price Index of 135.87. On an annual basis, the inflation rate slowed to 2.48 percent from 2.57 percent in the previous month, and slightly below market expectations of 2.5 percent. This figure is the lowest inflation rate since November 2009, said a senior officer today (04/01).

According to the Head of Indonesia Statistics Suhariyanto, inflation occurs because of an increase in prices as indicated by the increase in most expenditure group indices, such as: processed foods, beverages, cigarettes and tobacco by 0.21 percent; the housing, water, electricity, gas and fuel group by 0,11 percent and the clothing group by 0,23 percent.

While the health group was 0.24 percent; the education, recreation and sports group by 0.06 percent; and the transportation, communication and financial services group by 0.10 percent.

Meanwhile, the expenditure group experienced a decline in index, namely the foodstuffs group by 0.01 percent. Commodities that experienced a decline in prices included rice, broiler meat, fresh fish, broiler eggs, vegetable tomatoes, carrots, electricity, and gasoline.

Suhariyanto explained, there were 5 groups contributing or contributing to inflation and 2 groups did not contribute to national inflation.

“Expenditure groups that contribute to inflation, namely: processed food, beverages, cigarettes and tobacco group by 0.04 percent; housing, water, electricity, gas and fuel by 0.03 percent; clothing group by 0.01 percent; health group by 0.01 percent; and the transportation, communication and financial services group by 0.02 percent,” he said.

While, he added, expenditure groups that did not contribute to national inflation, namely foodstuffs and education, recreation and sports groups.

Suhariyanto added, annual core inflation fell to 3.03 percent in March from 3.06 percent in February, below the estimate of 3.06 percent. On a monthly basis, consumer prices rose 0.11 percent, compared with market consensus which rose 0.13 percent.

“The core component experienced inflation of 0.16 percent or an increase in index from 127.23 in February 2019 to 127.43 in March 2019. Components whose prices are regulated by the government experienced inflation of 0.08 percent and components whose prices were volatile experienced a deflation of 0 , 02 percent,” he said.

Meanwhile, the energy component experienced a deflation of 0.20 percent or a decline in the index from 161.69 in February 2019 to 161.37 in March 2019.

“Energy component inflation for the calendar year (January-March) 2019 is -0.91 percent and year-on-year inflation is 1.10 percent. The energy component in March 2019 contributed to inflation of -0.02 percent,” he said.

He explained, the highest inflation occurred in Ambon at 0.86 percent with a price index of 132.17 and the lowest occurred in Bekasi and Tangerang at 0.01 percent respectively with a price index of 133.26 and 143.56 respectively.

While the highest deflation occurred in Tual by 3.03 percent with a price index of 154.23 and the lowest occurred in Palembang, Batam and Sampit by 0.01 percent with a price index of 131.94; 137,48; and 138.61.

Suhariyanto also reported that the General Non-Oil and Gas Wholesale Price Index or the wholesale or agent price index rose by 0.13 percent against the previous month. The highest increase in the index occurred in the mining and quarrying sector at 1.95 percent.

“Some commodities that experienced price increases include coal, diesel, palm oil (CPO), as well as ore, crust and exported metal ash,” he explained.

While the price index for the Import and Exports Goods Group in February 2019 rose by 0.75 percent and 2.22 percent respectively against the previous month.

On the other side, the national farmer exchange rate was 102.73 or down 0.21 percent compared to the previous month. This decrease in the exchange rate is due to the Farmer’s Acceptable Price Index rising by 0.02 percent, lower than the increase in the Farmer’s Paid Price Index by 0.23 percent.

“In March 2019, the average price of premium quality rice in the mill was Rp9,815.00 per kg, down by 1.93 percent compared to the previous month. The average price of medium quality rice in the mill is Rp9,555.00 per kg, down by 2.49 percent. While the average price of low quality rice in the mill is Rp9,271.00 per kg, down by 2.15 percent,” he said.

Meanwhile, the number of foreign tourist visits to Indonesia in February 2019 rose 6.12 percent year on year, where the number of tourist visits in February 2019 increased by 4.80 percent.

Written by Daniel Deha, Email: daniel@theinsiderstories.com