SEPTEMBER 2015 DEFLATION AT 0.05 PERCENT

The development of prices of various commodities in September 2015 in general showed a decrease. Based on the monitoring result of the Central Statistics Agency (BPS) in 82 cities in September 2015 deflation occurred at 0.05 percent or a decline in Consumer Price Index (CPI) from 121.73 in August 2015 to 121.67 in September 2015. Inflation rate year-on-year (September 2015 to September 2014) at 6.83 percent.

Deflation occurs due to price decreases as indicated by the decline of indexes of some expenditure groups, namely: foodstuff 1.07 percent and transportation, communications and financial services 0.40 percent. While, the groups that experienced and increase of index are: food, beverage, cigarettes and tobacco 0.39 percent; housing, water, electricity, gas and fuel 0.20 percent; clothing group 0.83 percent; health group 0.44 percent; and education, recreation and sports 0.89 percent.

Some commodities that experienced price declines in September 2015 include: purebred chicken meat, red chili peppers, air transport tariff, red onion, cayenne pepper, cooking oil, gasoline, purebred chicken eggs, stink beans and kale. While, commodities which experienced price increase include; rice, academy/university tuition, gold jewelry, carrots, garlic, noodles, rice with side dishes, clove cigarettes, filtered clove cigarettes, home contract tariff, home rent tariff, wages of domestic helpers and cars.

Foodstuffs group in September 2015 experienced a deflation of 1.07 percent or a decline of index from 131.24 August 2015 to 129.83 in September 2015.

Of the 11 subgroups in the foodstuffs group, 6 subgroups experienced deflation and 5 subgroups experienced inflation. Subgroups that experienced the highest deflation is subgroups of spices at 6.08 percent, and the lowest is experienced by milk and eggs and products thereof at 0.26 percent. While, subgroup with the highest inflation is subgroup of grains, tubers and products thereof at 1.86 percent, and the lowest is experienced by other foodstuffs subgroup at 0.19 percent.

This group in September 2015 contributed 0.23 percent to deflation. Dominant contributors of deflation include: purebred chicken meat 0.13 percent; red chili papers 0.09 percent; red onion 0.04 percent; cayenne pepper and cooking oil at 0.02 percent, respectively; purebred chicken eggs, stink beans and kale at 0.01 percent, respectively. While the dominant contributors of inflation include: rice 0.08 percent; and carrots and garlic at 0.01 percent, respectively.

In September 2015 deflation occurred at 0.05 percent with Consumer Price Index (CPI) at 121.67. Of 82 cities of CPI, 36 cities experienced deflation and 46 cities experienced inflation. The highest deflation occurred in Sibolga at 1.85 percent with CPI at 120.15 and the lowest occurred in Bandung at 0.01 percent with CPI at 120.61. while, the highest inflation occurred in Marauke at 1.33 percent with CPI at 123.20 and the lowest occurred in Jakarta with CPI at 122.38. (E)

Business New - October 2, 2015