Inflation tumbles to 0.49% in May<\/p>\n
JAKARTA (JP): Indonesia's inflation rate declined to 0.49
\npercent in May, representing a sharp drop from this year's high
\nof 1.6 percent in April, the government announced yesterday.<\/p>\n
\"President Soeharto instructed all related government
\ninstitutions to continue efforts to maintain a slow increase in
\nconsumer prices, so that inflation will not reach a double digits
\nthis year,\" Minister of Information Harmoko told reporters after
\na limited cabinet meeting on the economy at the Bina Graha
\npresidential office yesterday.<\/p>\n
Price increases in May, added to the high consumer price
\nindices of over one percent recorded in January, February and
\nApril, brought the inflation rate during the first five months of
\nthis year to 5.22 percent, higher than the five percent level
\ntargeted by the government.<\/p>\n
Last year's annual inflation rate, at 9.24 percent, was
\nslightly lower than the 9.77 percent recorded in 1993.<\/p>\n
Harmoko said yesterday that the decline in the inflation rate
\nin May was related to a slowing in the growth of food prices from
\n1.34 percent in April to 1.25 percent in May, as well as a drop
\nin the growth of real estate prices from 2.31 percent to 0.02
\npercent.<\/p>\n
The index of clothing prices rose by only 0.11 percent in May,
\nhe said, while service prices rose by only 0.2 percent.<\/p>\n
\"But the President, in spite of the decline in the growth of
\nfood prices in general, was concerned over the increase of
\nvegetable prices by 15.35 percent and spice prices by 3.27
\npercent in May,\" Harmoko said.<\/p>\n
He said that, on the basis of that concern, the President had
\ninstructed State Minister of Food Ibrahim Hasan to investigate
\nthe causes of the sharp increases in the prices of those items.<\/p>\n
Harmoko said Indonesia's exports increased slightly from
\nUS$3.42 billion in February to $3.48 billion in March, while
\nimports also increased, from $2.98 billion to $3 billion, during
\nthe same period.<\/p>\n
Nevertheless, the country enjoyed a trade surplus of $477
\nmillion in March, as compared with $440 million in February, he
\nsaid.<\/p>\n
March's export revenue was comprised of $883.6 million from
\nexports of oil and natural gas and $2.6 billion from non-oil
\nproducts.<\/p>\n
\"During the 1994\/1995 fiscal year, ended in March, Indonesia
\nrecorded export revenues of $41.73 billion and import revenues of
\n$33.72 billion,\" Harmoko said.<\/p>\n
He said that the money supply, which fell from Rp 47.54
\ntrillion ($21.37 billion) as of February to Rp 45.13 trillion as
\nof March, further declined to Rp 44.79 trillion as of March.
\n(riz)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/inflation-tumbles-to-049-in-may-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}