Inflation hits double digit

Inflation hits double digit

JAKARTA (JP): Indonesia's annual inflation rate was 11.05
percent last year, the first double-digit inflation rate since
1983.

The Central Bureau of Statistics said yesterday that the high
annual inflation rate in 1997 was attributed to the 2.04 percent
increase in the monthly inflation rate in December.

The annual inflation rate was checked at 11.46 percent in 1983
but it declined to between 4.94 percent and 9.5 percent in
following years until 1996.

According to the Central Bureau of Statistics, the inflation
rate in 19997 was much higher than the 6.47 percent inflation
rate recorded in 1996.

The high monthly rate in December was caused by a rise in the
price index of food, housing and clothing.

Food prices rose 3.55 percent in December, housing by 0.88
percent, clothing by 2.1 percent and miscellaneous goods and
services by 1.48 percent.

In 1997, food prices surged 11.05 percent from 6.12 percent in
1996, while housing rose 18.45 percent from 4.72 percent and
clothing increased 7.67 percent from 5.77 percent.

However, prices of miscellaneous goods and services declined
to 8.11 percent last year from 9.69 percent in 1996.

The bureau said a drastic rise in the price of rice
contributed to the high increase in food prices.

It said the price of rice had increased by between 0.27
percent in Ambon, Maluku, and 10.63 percent in Semarang, Central
Java, in December.

The price increase contributed about 0.34 percent to inflation
in December, the bureau said.

It said Medan, North Sumatra, experienced the highest
inflation at 3.23 percent in December, compared to other
Indonesian cities.

It was followed by Yogyakarta at 3.21 percent and Palembang,
South Sumatra, at 3.15 percent.

On the contrary, Samarinda, East Kalimantan, experienced
deflation at 0.08 percent, Pekanbaru, Riau, at 0.15 percent,
Bengkulu at 1.15 percent and Palangkaraya, Central Kalimantan, at
1.22 percent. (das)