Inflation stable in November: BPS<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Prices increased slower than expected in November in spite of
\nRamadhan, which traditionally heightens inflationary pressures
\ndue to rising demand for goods and services, according to data
\nfrom the Central Statistics Agency (BPS).<\/p>\n
BPS reported on Wednesday that year-on-year inflation for
\nNovember was 6.18 percent, nearly the same as the year-on-year
\nOctober rate of 6.22 percent.<\/p>\n
Several analysts had previously expected the November
\ninflation to increase to around 6.3 percent.<\/p>\n
The relatively stable inflation would help the central bank
\nmaintain the current low interest rate, which is at 7.41 percent.
\nThe record-low interest rate is expected to encourage banks to
\nprovide more affordable loans to the corporate sector and ease
\nthe government's burden in servicing its huge domestic debt.<\/p>\n
The central bank expects inflation this year to reach from 6.5
\nto 7 percent.<\/p>\n
The on-year November inflation was driven by rising prices
\nacross the board in all goods and services. The food price index,
\nthe largest contributor to inflation, rose 6.04 percent as demand
\nincreased, particularly for rice, during the Idul Fitri holiday
\nseason. Even so, the increase in food prices was slightly lower
\nthan its October figure of 6.17 percent.<\/p>\n
The prices of processed foods, beverages, cigarettes and
\ntobacco increased by 4.63 percent, while that of clothing rose by
\n5.43 percent, both showing a slower increase than the previous
\nmonth.<\/p>\n
The statistics agency did not provide an explanation for the
\nrelatively stable inflation, but a solid harvest in the
\nagriculture sector due to favorable weather conditions and the
\nsmooth distribution of goods during the holiday season could be
\namong the factors that restricted an increase in prices.<\/p>\n
\"This month's inflation was caused by a rise in the prices of
\nalmost all commodities, mainly food and transportation,\" BPS
\nchief Choiril Maksum said.<\/p>\n
Choiril further said the full-year inflation would likely meet
\nthe government target of 6.5 percent, although this figure would
\nbe dependent on the final monthly inflation in December.<\/p>\n
Analysts expect inflation this month to ease down, but will
\nlikely remain at around 6 percent due to the Christmas and New
\nYear festivities.<\/p>\n
November's month-on-month inflation rose to 0.89 percent,
\nsending the cumulative inflation figure in the January-October
\nperiod to 5.31 percent.<\/p>\n
Elsewhere, the BPS said the cost of education in November
\nincreased by only 0.04 percent, health care by 0.20 percent and
\nhousing by 0.25 percent.<\/p>\n
The agency also said the telecommunications and transportation
\nprice index increased 0.48 percent, mainly due to higher oil
\nprices in the international market.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/inflation-stable-in-november-bps-1447893297",
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