Monthly inflation hits 25-year high of 6.88%

JAKARTA (JP): The monthly inflation rate for January hit a 25- year high of 6.88 percent due to sharp increases in the prices of food, housing, clothes and services, Minister of Information R. Hartono said yesterday.

Hartono said the January inflation rate was much higher than the previous record high of 2.04 percent in December.

"The January figure brought the cumulative inflation rate for the April to January period, the first 10 months of the current fiscal year, to 15.97 percent. That's up from 4.24 percent in the corresponding period last year," he said following the monthly cabinet meeting on economic affairs.

The meeting, chaired by President Soeharto, was joined by all economic-related ministers, including Minister of Finance Mar'ie Muhammad, Bank Indonesia Governor J. Soedradjad Djiwandono and Minister of Industry and Trade Tunky Ariwibowo.

In January, food prices surged 10.15 percent while housing prices were up 3.64 percent. Clothes prices rose 12.56 percent and services increased in price by 4.16 percent.

Indonesia's annual inflation rate was 11.05 percent during the last calender year, the first double-digit inflation rate since 1983.

The annual inflation rate was checked at 11.46 percent in 1983 but was kept between 4.94 percent and 9.5 percent in the following years through 1996.

According to the Central Bureau of Statistics, the inflation rate in calendar 1997 was much higher than the 6.47 percent figure recorded in 1996.

The government estimates the annual inflation rate will hit 20 percent in the next fiscal year beginning in April.

On international trade, Minister of Trade and Industry Tunky Ariwibowo announced that Indonesia recorded a US$1.42 billion trade surplus for November.

"It is a record-breaking monthly trade surplus, a 77 percent increase from the same month in 1996," the minister said.

Tunky said November's exports were worth $4.66 billion, comprising of $949.7 million in oil and gas exports and $3.71 billion in non-oil commodities. October's exports were worth $4.56 billion.

November's imports totaled $3.23 billion, comprising of $243 million in oil and gas and $2.99 billion in non-oil goods. It was a decline from October's $3.46 billion in imports.

Tunky added that Indonesia posted a cumulative trade surplus of $10.23 billion for the first 11 months of the last calender year.

Exports during the period totaled $48.72 billion, $10.62 billion in oil and gas and $38.10 billion in non-oil goods. Imports for the same period totaled $38.49 billion. (prb/gis)

Table: January-November trade balance (in US$ billion)

1997 1996

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Trade balance +10.23 +6.03

Exports 48.72 45.13

Oil and Gas 10.62 10.49

Non-oil 38.10 34.64

Imports 38.49 39.10