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Minister Darmin: January Inflation High

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2 February 2017 18:34 WIB

Coordinating Economic Minister Darmin Nasution. TEMPO/Richard Andika

TEMPO.CO, Jakarta - Coordinating Minister of Economic Affairs, Darmin Nasution, is optimistic that the effects of the January inflation would not continue significantly throughout the following months. Data shows that the inflation in January was mostly affected by products or goods with administered prices.

“Once administered prices increase then there won’t be another increase. This is different from the chili prices that went upwards which maybe drop next month,” Darmin said on Wednesday, January 1, 2017.

Central Statistics Agency (BPS) in their press release stated that the inflation in January 2017 reached 0.97 percent month to month (MtM) or 3.49 percent year on year (YoY). The administered prices group contributes to 2.57 percent inflation.

The transportation, communication, and financial services are the highest contributors of the January inflation. The first contributor to the inflation was the increased price of vehicle registration (STNK, SIM, and BPKB) renewals. The price increase contributed to a 0.23 percent inflation.

The prices of cellphone credit contributed 0.14 percent and the fuel price adjustments contributed 0.08 percent of inflation. Other high inflation contributors are housing components such as water, electricity, gas, and fuel, which contributed 0.26 percent of inflation.

The main factor is the issuance of the 900 VA electric tariff policy that started in the beginning of January and contributed 0.19 percent of inflation. Next, the rent house tariff also contributed to the inflation of 0.04 percent. The last sector that contributed to January’s inflation is the increase in the food supply ingredients as much as 0.66 percent.

GHOIDA RAHMAH



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