MAY 2014 INFLATION AT 0.16 PERCENT

Commodity prices, in general, in May 2014 showed an increase. Based on the monitoring results of the Central Bureau of Statistics (BPS) in 82 cities, in May 2014 there was an inflation of 0.16 per cent, or an increase in the Consumer Price Index (CPI) from 111.35 in April 2014. Inflation by calendar year (January to May) 2014 is 1.56 percent and inflation rate year-on-year (May 2014 to May 2013) at 7.32 percent.

Inflation occurs due to price increases as shown by the increase in the indexes of some expenditure groups, namely: processed foods, beverages, cigarettes, and tobacco 0.35 percent; housing, water, electricity, gas and fuel 0.23 percent; clothing group 0.12 percent; health group 0.41 percent; education, recreation, and sports 0.07 percent; and transportation, communications, and financial services 0.21 percent. While, expenditure groups that experienced a decrease of index are foodstuff group at 0.15 percent.

Commodities which experienced price increases in May 2014 include: purebred chicken meat, purebred chicken eggs, air transport tariff, dog fruit, mustard greens, tomato fruit, shallots, cooking oil, rice with side dishes, filter clove cigarettes, white cigarettes, house rent, non-foreman worker wages, wages of domestic servants, and railway tariff. While, commodities which experienced price decreases are: cayenne pepper, red chili pepper, rice, spinach, chickpeas, long beans and gold jewelry.

Commodity groups that contributed to inflation in May 2014 include: processed foods, beverages, cigarettes, and tobacco 0.06 percent; housing, water, electricity, gas and fuel 0.06 percent; clothing group 0.01 percent; health group 0.02 per cent. While commodity groups which contributed to deflation are foodstuff group at 0.03 percent.

Foodstuffs group in March 2014 experienced a 0.15 percent deflation, or a decline of index from 116.43 in April 2014 to 116.26 in May 2014.

Of the 11 subgroups in the foodstuffs group, 3 subgroups experienced deflation and 8 subgroups experienced inflation. Subgroups which experienced the highest deflation include subgroup of spices at 8.24 percent and the lowest occurred in the subgroup of vegetables at 0.58 percent. While, the subgroups that experienced the highest inflation are subgroup of meat and products thereof at 2.80 percent, and the lowest occurred in the nuts subgroup at 0.02 per cent.

This group, in May 2014 contributed 0.03 percent to deflation. Dominant contributions to deflation include: cayenne pepper 0.11 percent; red chili pepper 0.05 percent ; rice 0.03 percent; spinach, chickpeas, and long beans at 0.01 percent, respectively. While, commodities that contributed to inflation include: purebred chicken meat 0.07 percent; purebred chicken eggs 0.04 percent ; tomatoes 0.02percent; dog fruit, mustard greens, tomato fruit, shallots, and cooking oil at 0.01 percent, respectively.

In May 2014 there was an inflation of 0.16 percent with Consumer Price Index (CPI) at 111.53. From 82 cities of CPI, 37 cities experienced inflation and 15 cities experienced deflation. The highest inflation occurred in Pematang Siantar at 1.61 percent with CPI at 115.14, and the lowest occurred in Tegal and Kupang at 0.01 percent, respectively with CPI at 108.30 and 112.72, respectively. The highest deflation occurred in Pangkal Pinang at 1.27 percent with CPI at 110.83, and the lowest deflation occurred in Palembang at 0.03 percent with CPI at 108.41. (E)               

Business News - June 4, 2014