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BPS records deflation in September amid declining foodstuff prices
“The 0.27 percent deflation [in September] was driven by the decline in red chili, shallot, chicken, cayenne pepper and egg prices, while goods and services that still recorded price increases included gold jewelry and tuition fees for higher education,” said BPS head Suhariyanto in Jakarta on Tuesday.
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A trader puts bird's eye chilis into plastic packaging in Surabaya, East Java. (Antara/Zabur Karuru)
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drop in the prices of foodstuff commodities has contributed to the modest headline deflation recorded in September amid stable core inflation, signaling that people’s purchasing power remains firm, Statistics Indonesia (BPS) announced Monday.
The consumer price index decreased by 0.27 percent last month, reversing the 0.12 percent inflation booked in August. The latest figure was also greater than the 0.18 percent deflation recorded over the same period last year.
Year-to-date (ytd) inflation has been recorded at 2.2 percent, while year-on-year (yoy) inflation in September was booked at 3.39 percent. The latest inflation rate remains well within the central bank’s inflation target band of between 2.5 and 4.5 percent this year.
BPS head Suhariyanto said the decline in the prices of foodstuff commodities was one of the drivers of deflation in September.
“The 0.27 percent deflation [in September] was driven by the decline in red chili, shallot, chicken, cayenne pepper and egg prices, while goods and services that still recorded price increases included gold jewelry and tuition fees for higher education,” said Suhariyanto in Jakarta on Tuesday.
Foodstuff commodity prices fell 1.97 percent month-to-month (mtm) in September amid a slight increase in the price of rice.
Suhariyanto added that he did not project any sudden price increases for staple food commodities for the remainder of the year amid a stable rice price, which was supported by adequate reserve stocks stored by the State Logistics Agency (Bulog).
