Year-on-year inflation at 7.84% in July<\/p>\n
Urip Hudiono, The Jakarta Post, Jakarta<\/p>\n
Inflation in the country continued to creep up as an ongoing dry
\nseason and the recent avian influenza outbreak pushed food prices
\nhigher last month, official figures from the Central Statistics
\nAgency (BPS) show.<\/p>\n
The BPS reported in its latest report on Monday that the
\ncountry's Consumer Price Index (CPI) increased by 0.78 percent in
\nJuly from June, or 7.84 percent from their levels in July last
\nyear.<\/p>\n
BPS chief Choiril Maksum said that last month's inflation was
\nprimarily due to seasonal factors, which had caused the supply of
\ncertain food commodities to drop amid increasing demand.<\/p>\n
\"This has resulted in a surge in their prices,\" he said,
\nspecifically mentioning red chili peppers.<\/p>\n
\"The government's recent decision to prohibit rice imports has
\nalso caused the commodity's price to rise.\"<\/p>\n
Choiril further said that the recent outbreaks of avian flu in
\nthe country had also taken a toll in fueling the inflation.<\/p>\n
\"The outbreaks indeed caused poultry prices to decrease, but
\nthis was offset by the fact that people then switched to eating
\neggs, which caused their prices to sharply rise,\" he deduced.<\/p>\n
Indeed, staple food prices, which contributed to 0.5 percent
\nof July's inflation, increased the highest by 2.07 percent, led
\nby a surge in the prices of eggs, spices, dairy products,
\nvegetables and rice.<\/p>\n
The BPS also noted that the country's recent gasoline scarcity
\nhad caused the price of kerosene in several regions to rise,
\ncausing the cost for housing, water, electricity and gasoline to
\nincrease by 0.31 percent.<\/p>\n
Meanwhile, the government's decision to increase the excise on
\ncigarettes by 15 percent last month also pushed inflation up.<\/p>\n
\"The rise in cigarette prices has accumulated to an average of
\n9 percent, as cigarette producers continued to hike their prices
\nby a 4 percent rise last month, adding to the 5 percent in June,\"
\nChoiril said.<\/p>\n
Prices of processed food -- which includes cigarettes -- rose
\nby 0.44 percent last month.<\/p>\n
Effects from the new academic year starting in July had yet to
\nbe reflected in July's inflation, Choiril said, but those would
\nbe expected to put upward pressures on the inflation rate next
\nmonth. Costs for education, recreation and sports rose by 0.95
\npercent in July, while that for clothing and health services rose
\nby 0.55 percent and 0.31 percent respectively.<\/p>\n
Choiril explained that with the high inflation rate through
\nJuly, it would be quite difficult for the government to stay
\nwithin its budget projection of 7.5 percent for the year.<\/p>\n
\"But it can still be done if the government works hard in
\ncontaining inflation, particularly in ensuring the distribution
\nof commodities in the country,\" he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/year-on-year-inflation-at-784-in-july-1447893297",
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