Inflation stands at 0.22% in July

JAKARTA. Monthly inflation stood at 0.22 percent in July, triggered by the holiday season and the new academic year.

Inflation in the month pushed up annual inflation to 3.8 percent year-on-year (yoy) and 2.6 percent year-to-date (ytd), the Central Statistics Agency (BPS) announced Tuesday (8/1).

Indonesia, the world’s most populous Muslim-majority nation, saw a long holiday period during the Idul Fitri holiday from the end of June to early July. Meanwhile, the new academic year started in early July.

Higher prices of noodles, sweet coffee and cigarettes, for instance, along with spending on elementary school and high school tuition fees were common during the holiday season and at the start of the academic calendar, said BPS head Suhariyanto during a press conference at his office.

The components jacked up core inflation to 0.26 percent throughout the month, while inflation caused by administered prices and volatile food prices remained low at 0.07 percent and 0.17 percent, respectively.

"This month's inflation was more affected by core inflation components because of increases in processed food [beverages, cigarette and tobacco] and education prices," Suhariyanto said. "Effects from the administered price [increase] have vanished, while volatile food inflation was also very slim."

Prices of raw food, such as garlic, chicken meat, rice and red chili, in July were lower than those in June, allowing the food inflation to stay in check.

Effects of the rise in the electricity price, which partly pushed up monthly inflation in June to 0.69 percent, did not materialize in July, Suhariyanto added. (lnd)