October inflation recorded at 0,28%

MACROECONOMICS - JAKARTA. The Central Statistics Agency (BPS) announced on Thursday (1/11) that the October 2018 inflation rate stood at 0.28%. The figure brings the year-to-date (ytd) inflation to 2.22%.

Meanwhile, the annual inflation in the same period was 3.16% year-on-year (YoY). "This figure is still under control considering inflation is still below 3.5%," said Suhariyanto, Head of BPS, Thursday (1/11).

Suhariyanto explained, the main cause of the inflation was an increase in the price of red chilies, non-subsidized fuel and rental rates for houses.

In detail, Suhariyanto explained that housing, water, electricity, gas, and fuel experienced inflation of 0.42%. This group contributed the most share in October inflation by 10%. Followed by inflation in processed food, beverages, cigarettes and tobacco by 0.27% with a share of 0.05%.

"Prepared foods, rice, side dishes, and clove cigarettes contribute to the highest inflation," he explained.

Suhariyanto expects the price level - especially food - to remain stable until the end of the year. "We must be aware of December inflation because there are Christmas and New Year holidays," he said.

Citing BPS data, 66 cities from 82 cities recorded inflation. Meanwhile, 16 other cities experienced deflation. The inflation rate in Palu is the highest at 2.27%. Meanwhile, Cilegon inflation is the lowest at 0.01%. (Translator: Barratut Taqiyyah Rafie)