Consumer prices index down 0.07% in June

Consumer prices index down 0.07% in June

JAKARTA (JP): Indonesia's economic indicators improved last
month, with the consumer price index (CPI) declining by 0.07
percent after a rise of 0.06 percent in May, Minister of
Information Harmoko announced yesterday.

After a limited cabinet meeting on the economy, Harmoko said
that the country booked a surplus of $366.2 million in
international trade in April.

He explained that the June deflation was the second this year
after a 0.06 decline in the CPI last March.

The deflation lowered the cumulative inflation rate for the
January-June period to 4.03 percent, a significant drop from the
5.38 percent recorded in the same period of last year.

The June deflation was attributed to a 0.05 percent decline in
food prices, while housing prices rose 0.17 percent, clothing
0.07 percent and other goods and services by 0.19 percent.

"The decline in the inflation rate is very encouraging and
President Soeharto has instructed all related institutions to
continue their efforts to curb inflation during the rest of the
year," Harmoko said.

He said that the country's foreign trade balance recorded a
surplus of $366.2 million in April, with exports reaching $4.01
billion and imports $3.64 billion. Oil and gas contributed $939.2
million to the April exports and non-oil products $3.07 billion.

The April surplus, slightly lower than $477.5 million in
March, brought the country's total trade surplus in the first
four months of this year to $1.98 billion.

Exports in the January-April period reached $15.25 billion,
while imports were recorded at $13.26 billion.

Harmoko said that the cabinet meeting also discussed the
increase in the number of foreign tourist arrivals, which rose to
335,735 in May, or 27.7 percent over the same month of last year.
The country's foreign exchange earnings from the tourism sector
rose to $410.91 million in May, 29 percent higher than during the
same month last year. (hen)

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