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Airfares Contribute 0.04 Percent Deflation: BPS

1 July 2019 14:57 WIB

Would-be passengers check-in at Terminal 1 B of Soekarno-Hatta Airport in Tangerang, Banten, Sunday, May 26, 2019. ANTARA

TEMPO.CO, JakartaThe Central Statistics Agency (BPS) recorded a 0.14 percent deflation rate in transportation, communication, and financial services. Airfares alone contributed 0.04 percent deflation as the price ceiling had been lowered 12-14 percent since mid-June.

“The deflation in transportation, communication, and financial services at 0.03 percent occurred because air transportation tariffs have started to decline,” said the agency head, Suhariyanto, in his office, Jakarta, Monday, July 1.

According to him, 32 out of 82 cities monitored by the agency experienced lower airline tariffs. The highest drop was in Makassar by up to 12 percent compared to the previous month.

“In Batam as well, the airfares declined by 11 percent compared to May 2019,” he added. 

ReadTransportation Minister: Everyone Complains about Airplane Tickets

On the contrary, inter-city transportation saw inflation at 0.01 percent following a hike in public interest. “There was a hike in tickets of inter-city, inter-province buses. The highest increase was in Madiun, by up to 30 percent compared to the previous month,” he said.

The BPS recorded inflation rate in June 2019 was 0.55 percent, lower than the previous month’s 0.68 percent. “The main cause was the price hike of gold jewelry, red chili, and a number of vegetables,” Suhariyanto explained.

Thus, the year-to-date inflation from January to May 2019 reached 2.05 percent, while the year-on-year inflation was 3.28 percent.

HENDARTYO HANGGI



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