JAKARTA. After experiencing deflation for two consecutive months, Indonesia suffered inflation in November due to a hike in rice prices.
The Central Statistics Agency (BPS) reported on Tuesday that the country’s inflation rate stood at 0.21 percent in November. The calendar year inflation rate, for the period of January-October, stood at 2.37 percent, while year-on-year inflation stood at 4.89 percent.
The BPS further revealed that Indonesia’s core inflation in November stood at 0.16 percent. Meanwhile, year-to-date core inflation stood at 3.72 percent and 4.77 percent for year-on-year core inflation.
BPS deputy head of distribution and statistics Sasmito Hadi Wibowo said the increase in rice prices was the major cause of inflation in November.
“The price increase at the consumer level was a bit slim, only 0.05 percent. At the farmer level, the rice price increased by 3 percent. The highest price hike occurred in Batam, which stood at 11 percent,” he said at a press conference in Jakarta on Tuesday.
With increases in the prices of rice, eggs and chicken in November, Sasmito said, food commodities recorded 0.33 percent inflation, which contributed 0.07 percent to inflation in November. Food, beverages, cigarettes and tobacco recorded 0.47 percent inflation and contributed 0.08 percent to the month’s inflation, he went on.
Sasmito said the cigarette price increase was triggered by the government’s plan to increase cigarette taxes, which was introduced in October and is set to take effect in January.
“The highest increase of cigarette prices occurred in Merauke, which was up by 6 percent,” he said.
Sasmito said this year’s November inflation was the lowest in the last five years. Meanwhile, year-on-year inflation and year-on-year core inflation were the lowest throughout 2015.
“The core inflation has been shrinking in the few past months, giving ample room for the monetary authority to anticipate its monetary policy,” Sasmito said.
Of 82 consumer-price-index (IHK) cities, 69 cities saw inflation in November while the other 13 saw deflation.
The highest inflation rate occurred in Merauke, which stood at 2.35 percent, as a result of the hike in the price of staple foods. The lowest deflation was in Pangkal Pinang, which stood at 1.02 percent, following a decline in fish prices. (Ayomi Amindoni)
