onthly inflation rose 0.69 percent in June following an increase in transportation fares over the Idul Fitri holiday and electricity rates after a government subsidy adjustment, the Central Statistics Agency (BPS) announced on Monday.
The agency recorded that prices increased in 82 cities across the country, bringing annual inflation to 4.37 percent year-on-year (yoy), while deflation occurred in three cities.
“Inflation during Ramadhan and the Idul Fitri holiday this year was more controlled compared to in the previous three years because the government made efforts [to manage inflation], such as establishing a food task force," said BPS head Suhariyanto in a press conference.
(Read also: Government predicts 0.5% inflation in June)
Besides increases in air and inter-province transportation fares for Idul Fitri travel, he said inflation in June was also caused by a third increase in electricity rates for 900 volt-ampere (VA) capacity after the price was increased in January and March.
The effect of the electricity rate increase would subside in coming months because the June raise was the last one for this year, he added.
Meanwhile, the increase in food prices was relatively well-managed and only slightly contributed to inflation as only marginal food commodities were affected, such as young papaya, potatoes, cucumbers and tomatoes.
The price of shallots, which often contributes to volatile food prices, only saw a small increase in June, BPS data show.
"The pattern is different from previous years, when food prices soared. This time, inflation was caused more by administered prices," Suhariyanto said. (bbn)
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