Inflation in 2009 the lowest in a decade

The country’s 2009 inflation rate touched 2.78 percent, the lowest full year level (December-to-December)in a decade, the Central Statistics Agency (BPS) announced Monday.

“We have been trying to get the inflation level below 5 percent since the fall of New Order era and it has been accomplished now,” BPS head Rusman Heriawan told a press conference at his office.

Last year’s inflation was the lowest since 1999, when it fell to 2.01 percent, Rusman said.

The highest monthly inflation was in September (1.05 percent), but in December it was only 0.33 percent and 2.78 percent year-on-year.

The BPS has also recorded deflation in three months in 2009; in January at 0.07 percent, April (0.31 percent), and November (0.03 percent).

Rusman added the low inflation level was due to falling demand following the global economic downturn. “The global economic crisis was a contributory external factor, in addition to the depreciation of the US dollar, which contributed to our low level of inflation,” he said. (bbs)