BI Expects Indonesian Economy To Experience 0.1 Percent Deflation In August

Illustration (Photo: Doc. Antara)

JAKARTA - The Bank Indonesia (BI) Price Monitoring Survey estimates that the Indonesian economy will experience deflation of 0.1 percent in August compared to the previous month (month-to-month/mtm).

The Chief Executive Director of the BI Communications Department, Erwin Haryono, was quoted by Antara as saying that the estimate was based on price developments up to the second week of August 2022.

The main commodities that contributed to deflation in August 2022 until the second week were shallots, which contributed 0.14 percent (mtm), red chilies 0.09 percent (mtm), and cayenne pepper and cooking oil each with 0.06 percent (mtm). ).

Then, purebred chicken also contributed to the estimated deflation of 0.04 percent (mtm), air freight rates of 0.03 percent (mtm), tomatoes 0.02 percent (mtm), and spinach and oranges of 0.01 percent each. (mtm).

Meanwhile, he revealed that there were also commodities that contributed to inflation in the second week of August 2022, namely Household Fuel (BBRT) at 0.08 percent (mtm), filtered kretek cigarettes at 0.03 percent (mtm), as well as bottled water and rice. each by 0.01 percent (mtm).

BI will continue to strengthen coordination with the government and relevant authorities and continue to optimize the policy mix strategy to maintain macroeconomic and financial system stability to support further economic recovery.

Previously, the Central Statistics Agency (BPS) recorded inflation of 0.64 percent in July 2022 (mtm) or an increase in the Consumer Price Index (CPI) from 111.09 in June to 111.8 in July.

The main contributor to inflation in July, which was 0.64 percent (mtm), came from the increase in the price of red chili, air transportation fares, shallots, household fuel, and cayenne pepper.

With inflation in July, the inflation for the calendar year July 2022 against December 2021 is 3.85 percent and the year-on-year inflation (yoy) for July 2022 against July 2021 is 4.94 percent.