Inflation Stands at 0.22 Percent, Minister: Rice Price is Stable

TEMPO.CO, Jakarta - Coordinating Ministry for Economic Affairs Darmin Nasution stated that the 0.22 percent inflation rate recorded in September 2016 is still under control. "A 0.22 percent [inflation] isn't that huge," Darmin said on Monday, October 3, 2016.

According to Darmin, the somewhat manageable inflation rate was a result of price stabilization policy that has been implemented by the government. "The price of rice is [basically] stable. Usually that's the main cause of inflation. This year [the seasons] seem to be getting better," Darmin said.

The 0.22 percent rate, which was recently announced by the Central Statistics Agency (BPS) is considerably higher compared to the 0.2 deflation recorded in August 2016. Currently, the average rate of inflation recorded from January 2016 to September 2016 had reached 1.97 percent.

Based on BPS data, some of the items that contribute to September inflation include the price pressure of mobile phone credits, cigarettes, chilli, house rent prices, university tuition fees,  and also the electricity rate.

Darmin underlined that low inflation rate is not caused by low consumption rate. "If consumption lowers, price drops. But currently some prices are increasing right? That means it’s not because of low consumption rate. It is just because some commodity prices are increasing. It’s pretty normal," Darmin added.

ANGELINA ANJAR SAWITRI