Higher Electricity Tariff Cause High Inflation, Analyst Says
1 March 2017 09:32 WIB
TEMPO.CO, Jakarta - The increase of electricity tariffs for 900 VA customer category is predicted to be the main driver of February 2017 inflation increase.
"February 2017 inflation is predicted to be at 0.30 percent [month-to-month]," said Bank Permata economist Josua Pardede when contacted by Tempo on Wednesday, March 1, 2017.
Josua said that the effect of tariffs increase for pre-paid customers can already be seen on January 2017 inflation rate. On the other hand, Josua stated that fluctuating food commodity prices will contribute to deflation on February 2017.
"[The deflation] is in line with decreasing food commodity prices," Josua said.
Josua predicted that annual inflation rate for February 2017 will be at 3.9 percent (year-on-year). In addition, Josua predicted that core inflation rate will remain stable at a level 3.28 percent (year-on-year).
Previously in January 2017, the inflation rate was recorded at 0.97 percent (month-to-month) and 3.49 percent (year-on-year). Last month's inflation, according to Josua was mainly affected by the government's administered prices, which contributed 2.57 percent to the inflation rate.
GHOIDA RAHMAH
