BI: Inflation Rate September Increase Caused Rates goods subjected to Government

Jakarta, Aktual.com – Bank Indonesia see the September 2016 inflation rate of 0.22 percent from hikes in tariffs of regulated goods government (administered prices), while the prices volatile (volatile) deflation.

Inflation of “administered prices” of 0.14 percent, due to higher cigarette filter, electricity, cigarettes, white cigarettes, and drinking water tariff of the Drinking Water Company (PAM), said Executive Director of the Department of Communication BI Tirta Segara in Jakarta, Monday (3/10).

“Inflation in September source of inflation on the ‘administered prices’ and core components. Inflation ‘administered prices’ of 12:14 percent (mtm) or annual deflation of 0.38 percent (mtm),” he said.

Tirta mentioned, not only the pressure of “administered prices”, inflation volatility September 2016 also contributed by components of core inflation (core inflation), which amounted to 0.33 per cent on a monthly basis (month to month / mtm) and 3.21 per cent on an annual basis (year on year / yoy).

Some commodities core inflation contributor was the mobile phone rates, rental rates home, tuition college / university, cars, rice with side dishes and home contract rates. Meanwhile, for “volatile”, BI deflation of 0.09 percent (mtm) or annual basis experienced inflation of 6.51 percent (yoy).

Deflation was mainly sourced from the correction in commodity prices of eggs, chicken, carrots, red pepper, spinach, kale, and potatoes.

Tirta looked at the rest of the year inflation will remain under control and are at the lower limit of the inflation target in 2016, which is 3-5 percent (yoy). He said he and the government will strengthen coordination in controlling inflation is particularly wary of inflationary pressures “volatile” due to the La Nina wet dry season.

“Coordination of Government and Bank Indonesia will focus on ensuring the supply and distribution, especially the various basic needs, and keeping inflation expectations,” he said.

In September 2016, as announced the Central Statistics Agency (BPS) Monday afternoon, an inflation of 0.22 percent, so that the rate of inflation from January to September, 2016 reached 1.97 percent and the inflation rate from year to year (yoy) 3.07 percent.

*Musdianto

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