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Inflation on target in January
A female trader sorts onions and vegetables for sale at a traditional market in Central Java
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A female trader sorts onions and vegetables for sale at a traditional market in Central Java. Indonesiaâs annual inflation reached 4.14 percent in January with monthly inflation measured at 0.51 percent, mainly driven by higher prices for food especially onions. (Kompas) (Kompas)
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span class="inline inline-center">A female trader sorts onions and vegetables for sale at a traditional market in Central Java. Indonesia's annual inflation reached 4.14 percent in January with monthly inflation measured at 0.51 percent, mainly driven by higher prices for food especially onions. (Kompas)
Indonesia's annual inflation reached 4.14 percent in January with monthly inflation measured at 0.51 percent, both within the central bank's target range.
The increase in the consumer price index (CPI) was mainly driven by higher prices for food, such as chicken and onions.
Bank Indonesia (BI) targets full-year 2016 inflation of 3 to 5 percent. BI governor Agus Martowardojo had earlier estimated that January inflation would not exceed 1 percent.
Chicken prices increased by 7.32 percent month-on-month (MoM), while the price of onions rose 16.31 percent. Both contributed 0.09 percent respectively to overall inflation, the Central Statistics Agency (BPS) reported.
"Food ingredients are the driving factor for inflation with a 6.6 percent increase, followed by processed food and tobacco with a 6.27 percent rise. The problem is a lack of supply," BPS head Suryamin said in Jakarta on Monday.
On the opposite end, the transportation sector showed a deflationary trend as gasoline prices decreased by 3.67 percent y-o-y and contributed to deflation of 0.15 percent in the sector. Airplane fare were down 0.94 percent y-o-y and contributed 0.05 percent to deflation.
"The construction sector showed notable progress with only 1.79 percent inflation year-on-year. Despite intensive infrastructure development, the price of raw materials, tools and equipment could be maintained," Suryamin said. (ags)(+)
