Indonesia Records 0.04 Percent Deflation in Fourth Week of August: BI

TEMPO.CO, Jakarta - A price survey conducted by Bank Indonesia (BI) has shown the country recorded a deflation of 0.04 percent in the fourth week of August, 2020.

"(As per) the price development in August, 2020, (Indonesia) is expected to see a deflation of 0.04 percent," chief of the BI's communication department, Onny Widjanarko, said in a written statement released on Friday.

With a deflation of 0.04 percent, BI has predicted 0.94-percent year-to-date inflation rate and 1.34-percent year-on-year inflation rate for August, 2020, he added.

"The inflation rate will stay at a low level and remain controllable," he remarked.

The deflation was mainly contributed by a 0.15-percent decline in the price of purebred chicken meat. Meanwhile, the price of onions fell 0.08 percent and the prices of oranges, tomatoes, and purebred chicken eggs dropped 0.02 percent each, adding to deflationary pressure.

However, the prices of gold jewelry rose 0.11 percent, cooking oil 0.02 percent, and red chili 0.01 percent, adding to inflationary pressure.

The Central Statistics Agency (BPS) had earlier announced that a drop in the prices of commodities such as onions, purebred chicken meat, and air tickets had contributed to a deflation of 0.10 percent in July this year.

Read also: August Deflation at 0.07%, BPS Says

ANTARA