Inflation to remain high despite drop in prices<\/p>\n
JAKARTA (JP): The Consumer Price Index fell by 0.21 percent
\nmonth-on-month in August, the first deflation since September
\nlast year, the Central Bureau of Statistics (BPS) reported on
\nFriday.<\/p>\n
BPS also said that year-on-year inflation eased to 12.23
\npercent from 13.04 percent in July, while inflation between
\nJanuary and August of this year reached 7.48 percent.<\/p>\n
The bureau said that the deflation was primarily caused by a
\ndrop in the price of goods and services, especially in
\nunprocessed food by 2.35 percent and clothing by 2.68 percent.<\/p>\n
However, the price of processed food, beverages, cigarettes
\nand tobacco increased by 0.41 percent; housing increased by 0.89
\npercent; health care by 0.20 percent; education, recreation and
\nsports by 4.15 percent; and transport and communications by 0.01
\npercent.<\/p>\n
Senior economist at PT Danareksa Securities Raden Pardede said
\nthat the August deflation was logical as inflation had peaked in
\nJuly following earlier increases in the price of fuel and
\nelectricity.<\/p>\n
\"I think inflation reached a peak in July, now we will see an
\neasing off of the pressures of the power hikes, and so we can
\nexpect more deflation in the next couple of months,\" he told The
\nJakarta Post.<\/p>\n
Raden predicted that the economy would see more deflation in
\nSeptember and October, but inflation would kick in again in
\nNovember and December.<\/p>\n
\"But inflation in December is seasonal, because during that
\nmonth we have religious holidays,\" he said, referring to the
\nMuslim holiday, Idul Fitri, which will fall in the same month as
\nChristmas this year.<\/p>\n
However, he said that annual inflation would remain in the
\ndouble-digit range, as it was difficult to offset the high
\ninflation rates that had occurred several months back.<\/p>\n
\"We are still predicting annual inflation at between 10.5
\npercent and 11 percent,\" Raden said.<\/p>\n
The current strengthening of the rupiah against the U.S.
\ndollar was expected to further weaken inflationary pressures.<\/p>\n
However, it would not have an immediate effect on the price of
\nimported goods, Raden said, adding that the effects of the rupiah
\nwould only be felt two or three months ahead.<\/p>\n
The government has initially targeted inflation this year to
\nreach 9.3 percent, but in a recent agreement with the
\nInternational Monetary Fund, the inflation target for the year
\nwas set at 9 percent - 11 percent.<\/p>\n
Elsewhere, BPS reported exports increased slightly in July by
\n0.91 percent to US$4.85 billion from $4.80 billion in June,
\nsending the total for January-July to $34.15 billion.<\/p>\n
\"This is a 1.72 percent decrease compared with exports during
\nthe same period last year which totaled $34.75 billion,\" BPS
\nchief Soedarti Surbakti said.<\/p>\n
She said that the slight rise in exports was caused by a 1.6
\npercent increase in non-oil and gas exports.<\/p>\n
Non-oil and gas exports rose to $3.77 billion compared with
\n$3.71 billion the previous month, but were down 3.61 percent
\nbetween January and July this year to $26.09 billion, compared
\nwith last year.<\/p>\n
Oil and gas exports on the other hand declined 1.44 percent to
\n$1.07 billion in July from $1.86 billion in June, due to a
\ndecline in exports of crude oil.<\/p>\n
July imports declined by 10.63 percent to $2.48 billion
\ncompared with the previous month.(tnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/inflation-to-remain-high-despite-drop-in-prices-1447893297",
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