Inflation 1.16% in January
Inflation 1.16% in January
JAKARTA (JP): Increases in the prices of food, clothing and
housing resulted in an inflation rate of 1.16 percent in January,
Minister of Information Harmoko announced yesterday.
He told reporters after a limited cabinet meeting on the
economy at the Bina Graha presidential office that the January
inflation rate was caused by a 1.65 percent increase in food
prices at the capitals of the country's 27 provinces, 1.14
percent rise in clothing prices, 1.01 percent hikes in housing
prices and 0.75 percent increment in the prices of other goods
and services.
"The January inflation was higher than the 0.52 percent
inflation last December but it was lower than the 1.25 percent
inflation in January 1994," said Harmoko.
He said that the large increase in food prices was caused
mainly by a sharp rise in rice prices in various cities.
"Rice prices, for example, rose 10.81 percent in Ujungpandang,
8.98 percent in Manado, 8.49 percent in Surabaya, 7.52 percent in
Semarang, 7.75 percent in Jakarta and 7.05 percent in Padang," he
said.
However, the rates of the rice price increases were still far
lower than the 11 percent recommended by the government.
The government announced last October that the floor price of
husked rice paid to village cooperatives by the national
Logistics Board (Bulog) should be raised by 11 percent to Rp 657
per kilogram in January.
Harmoko said yesterday that President Soeharto, concerned
about January's high inflation rate, had instructed the Central
Bureau of Statistics (BPS) to study the reasons behind the
soaring food prices.
"The President was concerned because (the rise occurred in
spite of the fact that) distribution of a number of foodstuffs
has been improved," he said.
The minister said that the government, in trying to control
inflation prior to the Idul Fitri holiday in early March, has
encouraged additional supplies of foodstuffs, particularly edible
oil, sugar and flour.
The monthly supply of edible oil, for example, is expected to
reach 175,460 tons, far higher than the demand, estimated at
137,485 tons, he said.
He said that a few days before and after the Idul Fitri
holiday on March 3-4, the government will also provide additional
supplies of meat, chicken and eggs at market places to prevent
price escalation.
Prices usually increase prior to the Idul Fitri holiday,
thereby causing a rise in the inflation rate. The inflation rate
in February 1994, one month before the same holiday, increased to
1.76 percent from 1.25 percent in the previous month.
Export
Yesterday's meeting also reported that Indonesia's exports
reached US$36.29 billion during the first 11 months of 1994,
$27.6billion of which was contributed by non-oil products and
$8.68 billion by oil and gas.
Because imports reached only $28.65 billion, Indonesia enjoyed
a trade surplus of $7.63 billion in the January-November period
of 1994, Harmoko said.
He said that during November alone, the country's exports
reached $3.64 billion, while imports were recorded at $2.79
billion, thereby resulting in a trade surplus of $855.8 million.
The November exports consisted of $2.77 billion of non-oil
products and $874.8 million of oil and gas, he said.
He said the meeting also reported that the country's money
supply increased by 2.6 percent to Rp 45.62 trillion ($20.6
billion) as of last December from Rp 44.43 trillion as of last
November.
The December figure indicates that the money in circulation
grew by 23.18 percent during 1994. Data at Bank Indonesia shows
that the money supply was recorded at Rp 37.03 trillion as of the
end of 1993. (riz)