Govt reports deflation

JAKARTA (JP): The government reported yesterday 0.12 percent month-on-month deflation for March, mainly caused by a drop in the price of food and services.

The Ministry of Finance stated yesterday the prices of food and services had dropped 0.35 percent and 0.40 percent while the prices of housing and clothing had risen 0.22 percent and 0.16 percent respectively.

The ministry said the price of transportation had fallen the most among services.

Inflation in the 12 months up to March 31 was 5.17 percent, down from 8.86 percent in the previous 12 months, the ministry said.

"It (5.17 percent inflation) is the lowest inflation since the 1985/1986 fiscal year," the ministry's statement said.

It said inflation in the first quarter of this year was 1.96 percent, lower than the 3.26 percent recorded in the same period last year. (bnt)