Photo by BPS

JAKARTA (TheInsiderStories)—Surprisingly, Indonesia recorded deflation  0.05 percent in August from inflation 3.18 percent in July, Statistics Indonesia reported on Monday (03/09). In annual basis, the inflation rate at level 3.20 percent in August from 3.18 percent in July.

The Head of Statistics Indonesia Suhariyanto said the inflation data is on the track and inline with government’ target 3 percent +/- 1 percent. The deflation in August was triggered by lowered commodities price such as fresh fish and air fare costs, he added.

Of the 82 cities monitored by the agency, Suhariyanto explained, there are 52 cities of deflation and 30 cities of inflation. The low inflation is in line with the Bank Indonesia that estimated inflation remains within its target this year at 2.5-4.5 percent.

However, the low inflation also indicated the weak people’s purchasing power. Southeast Asia’s biggest economy recorded 4.95 percent in household consumption in 2017 or the lowest since 2010 that reflected low people’s purchasing power.

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