Food price increase brings November inflation to 0.25%

JAKARTA (JP): The consumer price index (CPI) rose 0.25 percent in November from the level the previous month, due particularly to increases in prices of food commodities, the Central Bureau of Statistics (BPS) said on Wednesday.

BPS chief Sugito Suwito said year-on-year inflation for the period November 1998 to November 1999 was 1.58 percent.

He said it brought cumulative inflation from January until November to 0.27 percent, compared to 75.2 percent in the same period last year.

Based on the fiscal year beginning in April, cumulative inflation up to November was 3.68 percent.

"Food commodities, whose prices rose 1.17 percent, were the largest contributor to the November inflation," he told a news conference.

"This is a cyclical phenomenon." He noted that prices of food commodities usually increased around the Muslim fasting month, which will start on Dec. 9.

However, he noted the price of rice was still declining due to an oversupply from imports.

He said other commodities -- including vegetables, chicken, eggs and spices -- posted price increases.

Prices of processed food, beverages, cigarettes and tobacco were up by 0.18 percent, housing 0.15 percent, health costs 0.16 percent, transportation and communications 0.09 percent and costs of education, recreation and sports 0.12 percent.

Sugito said prices of textiles and jewelry declined 1.29 percent.

"The price of gold will decline if the rupiah is stronger against the U.S. dollar," he said, noting the exchange rate of the rupiah against the dollar strengthened during the month.

November's inflation was the second increase since March. The economy enjoyed deflationary pressure until September, following hyperinflation of more than 77 percent last year when the economic crisis deepened.

The central bank has estimated inflation for the whole of 1999 at about 2 percent.

Exports rise

BPS also reported that exports in October increased 2.13 percent to US$4.59 billion from $4.49 billion in September.

But the export value for January to October dropped 3.53 percent to $39.63 billion from the same period last year, BPS added.

It said non-oil and gas exports in October were $3.54 billion, or a 1.1 percent decline from the previous month, while the figure for January to October dropped 7.12 percent from the level in the same period last year.

BPS said imports in October reached $2.03 billion, slightly lower than $2.13 billion last year. Imports during the January to October period totaled $19.74 billion, or a 12.55 percent drop from $22.58 billion in the same period last year.

Imports of consumer goods from January to September increased 39.18 percent to $1.88 billion from the same period last year, BPS said.

It added that the import of raw materials in the January to September period declined 4.96 percent from the same period last year, while the import of capital goods plunged 50.23 percent.

Separately, the central bank auctioned on Wednesday its one- month SBI promissory notes at a weighted average interest rate of 12.86 percent, which was lower than the level in the previous week.

The benchmark interest rate declined despite the weakening of the rupiah against the U.S. dollar and inflation in November.

The benchmark interest rate hit more than 70 percent last year. (rei)