FEBRUARY 2015 DEFLATION 0.36 PERCENT

Development of commodity prices in February 2015 in general showed a decrease. Based on the monitoring results of the Central Statistics Agency (BPS) in 82 cities, in February 2015 there was a 0.36 percent deflation, or a decline in the Consumer Price Index (CPI) from 118.771 in January 2015. Deflation rate by calendar year (January-February) 2015 at 0.61 percent and inflation rate year-on-year (February 2015 to February 2014) at 6.29 percent.

Deflation occurred due to price decrease as indicated by a decrease in indexes of expenditure groups, i.e. foodstuffs 1.47 percent; and transportation, communications, and financial services 1.53 percent. While, other expenditure groups which experienced increase of index include food, beverages, cigarettes, and tobacco group 0.45 percent; housing, water, electricity, gas, and fuel group 0.41 percent; clothing group 0.52 percent; health group 0.39 percent; and education, recreation, and sports group 0.14 percent.

Some commodities whose prices decline in February 2015 include; red chili, gasoline, cayenne paper, transportation rates in the city, purebred chicken meat, purebred chicken eggs, diesel fuel, tomatoes, green peppers, red onions, intercity transport fares, gold jewelry, filtered clove cigarettes, cars, domestic servants salary, dried instant noodles, grapes, spinach and hospital tariff.

In February 2015, expenditure groups that contributed to deflation include: foodstuffs 0.32 percent and transportation, communications, and financial services 0.26 percent. While, expenditure groups that contributed to inflation included: food, beverages, cigarettes, and tobacco 0.07 percent; housing, water, electricity, gas, and fuel 0.10 percent; clothing group 0.03 percent; health group and education, recreation, and sports group at 0.01 percent, respectively.

This group, in February 2015 experienced deflation of 1.47 percent or decrease of index from 127.52 in January 2015 to 125.65 in February 2015.

From 11 subgroups under this group, 5 subgroups experienced deflation and 6 subgroups experienced inflation. Subgroups which experienced the highest deflation are spices subgroups at 17.71 percent, and the lowest was experienced by subgroup of fats and oils at 0.27 percent. While, subgroups with the highest inflation are subgroup of grains, tubers, and products thereof at 2.70 percent, and the lowest was experienced by nuts subgroup at 0.16 percent.

This group, in February 2015, contributed 0.32 percent to deflation. Dominate contributors of deflation include: red chili 0.28 percent; and red onion at 0.01 percent, respectively. Conversely, dominant contributors of inflation are: rice 0.11 percent; dried instant noodles, grapes, and spinach 0.01 percent, respectively.

In February 2015, deflation occurred at 0.36 percent with Consumer Price Index (CPI) at 118.28. Of 82 cities of CPI, cities experienced deflation and 12 cities experienced inflation. The highest deflation occurred in Bukit Tinggi at 2.35 percent with CPI at 114.99, and the lowest occurred in Jayapura at 0.04 percent with CPI at 119.64. While, the highest inflation occurred in Tual at 3.20 percent with CPI at 130.63, and the lowest occurred in Manokwari at 0.04 percent with CPI at 112.50. (E)

Business News - March 4, 2015