BI Governor: Deflation Not An Achievement
1 October 2015 14:26 WIB
TEMPO.CO, Jakarta-The Government considers September’s deflation is not an achievement to be proud of, because it indicates slowing demand in the market.
Darmin Nasution, Coordinating Minister for Economic Affairs, said there are positive and negative sides of the deflation that occurred during September.
The positive side, in general food prices did not experience much increase, while the downside shows a slowdown of demand in the market.
"So we can not boast it as a success, because there are bad sides as well," he said at the Presidential Palace Complex, Jakarta, Thursday, October 1.
Nasution said the government would study the causes of deflation in September 2015. By doing so, the government can formulate appropriate policies to respond to the situation in the market.
The Central Statistics Agency has stated that inflation rate for January to September 2015 reached 2.24 percent, lower than January to August 2015 which was 2.29 percent and January to September 2014 period which was 3.71 percent.
In September, deflation occurred in 36 out of 82 cities and the general price decline is 0.05 percent.
The price decline occurs in food material group (1.07 percent) and transportation, communication and financial services groups (0.40 percent). The groups that experience index increase are beverages, cigarettes and tobacco (0.39 percent), houses, water, electricity, gas and fuel (0.2 percent), clothing (0.83 percent), health (0.44 percent) and education, recreation and sport (0.89 percent).
The highest deflation is in Sibolga with 1.85 percent and Consumer Price Index (IHK) 120.15 percent and the lowest is in Bandung with 0.01 percent with IHK 120.61 percent. The highest inflation is in Merauke with 1.33 percent and IHK 123.2 percent and the lowest is in Jakarta with 0.01 percent with IHK 122.38.
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