Prices fall slightly in February: BPS<\/p>\n
Urip Hudiono, The Jakarta Post, Jakarta<\/p>\n
Consumers in the country anticipating a price rise because of
\nTuesday's fuel price hike may be interested to know that the
\nprices of goods fell slightly last month.<\/p>\n
The Central Statistics Agency (BPS) reported on Tuesday
\ncommodity prices experienced a deflation of 0.17 percent in
\nFebruary.<\/p>\n
Analysts had expected that prices would have risen in the last
\nmonth in anticipation of government's plan to cut subsidies to
\nfuel.<\/p>\n
The large amount of overseas aid caused deflation of 1.29
\npercent in Banda Aceh, after the capital of the tsunami-stricken
\nprovince a experienced a 7.32 percent rise in early January.<\/p>\n
BPS chief Choiril Maksum said February's deflation was largely
\nattributable to a decline of about 1 percent in basic food
\nprices.<\/p>\n
"The deflation was also caused by a decrease in education
\ncosts," he said.<\/p>\n
Prices of basic foods fell 1.46 percent last month,
\noutweighing the price rises of other basic goods, such as
\nprocessed food by 0.37 percent, clothing by 0.04 percent, and
\nhousing costs by 0.38 percent.<\/p>\n
The cost of education, meanwhile, decreased by 0.02 percent,
\nalthough costs of health services rose by 0.18 percent and
\ntransportation by 0.10 percent.<\/p>\n
With February's deflation and January's 1.43 percent
\ninflation, the inflation now stands at 1.26 percent.<\/p>\n
February's on-year inflation, meanwhile, stands at 7.15
\npercent, exceeding 2004's February 4.60 percent. The government
\nis targeting a full-year rate of between 6.5 percent and 7
\npercent for 2005.<\/p>\n
Despite the good news, BPS warned consumers of a possible rise
\nin prices this month following the fuel subsidy cuts.<\/p>\n
"Our survey says that the rise in Premium-type gasoline will
\ndirectly raise inflation by 0.4017 percent, while diesel fuel
\nwill increase by 0.0223 percent."<\/p>\n
Premium gasoline was hiked 32 percent from Rp 1,810 to Rp
\n2,400, while diesel fuel by 27 percent from Rp 1650 to Rp 2,100.<\/p>\n
"We have also calculated that if transportation fares,
\nelectricity and telephone rates also rise due to the fuel price
\nincreases, then inflation will further be affected," he said.<\/p>\n
A pick up in inflation will lead to decreased purchasing power
\nand further stagnate the country's already less-than-robust
\neconomic growth as domestic consumption makes up some 70 percent
\nof GDP. It will also encourage the central bank to increase its
\nbenchmark one-month (SBI) interest rate.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/prices-fall-slightly-in-february-bps-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}