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Weak demand persists despite jump in November inflation
Core inflation fell further to 1.67 percent yoy in November, the weakest since 2004 when BPS started keeping records of the indicator.
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Vegetable vendors serve customers at Bandarjo Market in Semarang regency, Central Java. (Antara Photo/Aditya Pradana Putra)
W
eakening consumer demand persists in Indonesia despite a jump in annual inflation recorded in November as the pandemic-induced economic downturn continues to batter purchasing power.
Indonesia’s inflation rate picked up in November to 1.59 percent year-on-year (yoy), the highest level since June as the rainy season hindered the distribution of goods and services, Statistics Indonesia (BPS) announced Tuesday.
The consumer price index (CPI) picked up for the third time in a row and was higher than the 1.44 percent recorded in October but still below Bank Indonesia’s (BI) target range of 2 to 4 percent. On a month-to-month basis, the CPI rose 0.28 percent, the highest since February this year before the country saw COVID-19 cases.
The November inflation was driven by the rising prices of chicken eggs, red chili, shallots and airline prices, among other products.
Read also: Year-end holidays won’t spur consumption if COVID-19 uncontrolled: Economists
“We need to be cautious in the rainy season as [bad] weather, rainfall and high waves hinder the distribution of goods from distributors to consumers,” BPS deputy head for distribution and service statistics Setianto told reporters in a virtual briefing Tuesday.
Administered prices were up 0.56 percent yoy, while volatile prices recorded annual inflation of 2.41 percent.
