Not an Inflation! The Central Statistics Agency Records June 2021 Deflation Of 0.16 Percent, What's Going On?

JAKARTA - The Central Statistics Agency (BPS) noted that for the June 2021 period there was a deflation of the Consumer Price Index of 0.16 percent. This figure is in contrast to the May 2021 book with an inflation of 0.32 percent.

Head of BPS Margo Yuwono said the deflation last month was based on observations made in 90 cities across Indonesia.

"With these results, inflation in the calendar year was recorded at 0.74 percent, and annual inflation was at 1.33 percent", he said in a virtual press conference, Thursday, July 1.

Margo added that of the 90 cities that became the object of observation, 56 cities experienced deflation and 34 other cities experienced inflation.

"The highest deflation occurred in Kupang (NTT) of 089 percent with the main contributors being the decline in the price of kale, the cost of air transportation fares, and the decline in the price of tomatoes", he said.

Meanwhile, the city with the highest inflation achievement was in Singkawang, West Kalimantan at 1.36 percent, which was caused by an increase in the price of pork, raw tofu, and purebred chicken.

"The deflation that occurred in June was the first deflation since January 2021", he added.

Furthermore, based on expenditure groups, there were four important sectors that experienced the deepest deflation, namely food and beverages and tobacco (0.71 percent), clothing and footwear (0.12 percent), transportation (0.35 percent), and the information group. communication and financial services (0.01 percent).