Factor of inflation in the end of July was contributed by cayenne pepper (Credit : CNN)

BI: Inflation in the first week of August reaches 0.12%

Siti Fatimah Adri
Politics & Economic
News Flash Indonesia
Aug 10, 2019
1649
Bank Indonesia (BI) estimates that Consumer Price Index (CPI) until the first week of August 2019 to experience inflation of 0.12 percent monthly (month-to-month). In addition, BI also predicts inflation until the end of this year to reach 3.44% year on year (yoy).

According to the BI Governor, Perry Warjiyo these results were obtained from the national Price Monitoring Survey (SPH) conducted by the monetary authority on a regular basis. He also said that inflation was still stable now.

Perry said that factor of inflation in the end of July was contributed by cayenne pepper, which reached 0.12% of inflation. Red chili contributed to the inflation contribution of 0.09% while 0.05% of cayenne peppers. In addition there is also gold which contributed 0.04 percent, and drinking water by 0.01 percent. Seasonal factors have disrupted the supply of chilies so the price has increased.

He also said that there were several commodities which actually contributed to deflation. Some of these commodities include air transport rates with a share of 0.08 percent, onions 0.04 percent, and vegetable tomatoes by 0.04 percent.
According to Perry, this figure is below midpoint of target, considering that the central bank targets inflation to be at the level of 3.5 plus minus 1 percent until the end of the year.

Based on data from the Central Statistics Agency (BPS), monthly inflation in July was 0.31 percent with the highest share of inflation caused by cayenne pepper by 0.06 percent, gold prices and education by 0.92 percent. The calendar year inflation during the January-July period was 2.36 percent.

Source: https://www.cnnindonesia.com/ekonomi/20190809150813-532-419888/bi-taksir-inflasi-pekan-pertama-agustus-012-persen