Inflation decreased by 0.18% in March

JAKARTA (JP): Consumer prices in March declined by 0.18 percent from the level in February, bringing the 1998/1999 fiscal year inflation to 45.44 percent, well below the government's target of 66 percent, the Central Bureau of Statistics (BPS) announced on Saturday.

BPS chief Sugito Suwito attributed the deflation during the month mainly to lower food prices.

"During the first quarter of 1999, monthly inflation was on a steady downward trend. This turned into deflation of 0.18 percent in March due largely to the drop in food prices, " he told a press conference.

He said cumulative inflation during the first quarter of 1999 was 4.08 percent, compared to the projection for the whole year of between 15 and 20 percent.

He added that food prices dropped by 0.62 percent in March, while prices of processed foods, beverages, cigarettes and tobacco fell by 0.04 percent.

"The prices of rice alone dropped by 0.25 percent in March, largely due to the beginning of the harvest season," Sugito said.

But other sectors saw inflation during the month, including housing (0.12 percent) clothing (0.02 percent) health care (0.04 percent) education, recreation and sports (0.01 percent) and transportation and communications (0.29 percent).

BPS reported that the trade surplus in January amounted to US$1.19 billion.

The 1998 trade surplus totaled $21.51 billion, compared to a surplus of $11.76 billion in 1997.

He added that the trade surplus last year was not reliant on the oil and gas sector, as all other sectors contributed $16.29 billion. The oil and gas sector dominated the trade surplus in 1997, with a contribution amounting to $7.70 billion.

Exports in January reached $3.0 billion, less than the $3.91 billion recorded in December, and lower still than the $4.15 billion worth of exports in January last year, BPS said in its monthly report.

"The challenge to increase export in 1999 will be more difficult because the export value in January was even lower than the sluggish months in 1998 and 1997," the report said.

Oil, gas exports

BPS said that oil and gas exports in January dropped to $642.9 million from $667.5 million in December, and non-oil and gas exports declined to $2.36 billion from $3.24 billion.

The report added that exports for the whole of 1998 totaled $48.85 billion, an 8.6 percent decline from 1997.

BPS attributed the export drop to a 32.3 percent decline in oil and gas exports to $7.87 billion, from $11.63 billion in 1997.

It added that non-oil and gas exports also fell by 2.02 percent, from $41.82 billion to $40.98 billion.

The country's highest monthly export revenue in 1998, amounting to $4.58 billion, was achieved in July, while the lowest was recorded in April at $3.65 billion, BPS said.

In 1997, the highest export revenue was posted in September, with a value of $4.71 billion, while the lowest, amounting to $4.08 billion, was in February.

BPS said total imports in January were worth $1.81 billion, much lower than the $2.40 billion last December, and $2.58 billion in January 1998.

It added that oil and gas imports declined to $229.8 million in January from $238.9 million in December, while non-oil and gas imports dropped to $1.58 billion from $2.16 billion.

The report put total imports in 1998 at $27.34 billion, a 34.4 percent drop from the $41.70 billion spent on imports in 1997.

It pointed to the 32.4 percent drop in oil and gas imports, to $2.65 billion from $3.92 billion, while non-oil and gas imports plunged by 34.6 percent, to $24.68 billion from $37.76 billion.

The highest monthly imports recorded in 1998 was in January, with a total value of $2.58 billion, while the lowest import figure was for April, with $1.92 billion. (rei)