June Inflation 0.54 percent, Head of BPS: Price Controls Considered Successful Enough

Foodstuffs contribute more than half of inflation in June 2015, which reached 0.54 percent

Head of the Central Statistics Agency (BPS), Suryamin, said that in June 2015 there is inflation of 0.54 percent, thus the inflation rate of the calendar year (January to June 2015) by 0.96 percent, while the year-on-year inflation amounted to 7.26 percent.

When compared to the previous 4 years (excluding 2014), according to Suryamin, inflation in June was the lowest. If see the condition of the month of June in the year of 2010-2013, at a time before entering the month of Ramadan. “This illustrates the price control has been successful enough,” Suryamin said.

BPS noted of inflation in the 76 cities and 6 cities deflation. The highest inflation occurred in Sorong (1.9 percent) and the lowest in Palu (0.03 percent). Meanwhile, deflation occurred in Tual (0.8 percent). “This is caused by fish products is quite high, so the supply to the domestic market to be higher, and the price becomes lower,” Suryamin said.

According to BPS, inflation in May 2015 was mainly due to price increases in the group of Foodstuffs (1.6 percent), by contributing to inflation by 0.33 percent, or about 61 percent the share upon the occurrence of inflation in June 2015.

Assess Suryamin, the high inflation rate on foodstuff, that makes inflation June to 0.54, is reasonable, considering the prices of some basic commodities that always increases when entering the month of fasting. “However, if viewed inflation rate of 0.54, this (price level in June) is quite restrained,” Suryamin said.

While the views of the component groups, the highest inflation came from volatile price components (volatile food) of 1.74 percent, is well above the inflation rate and the core component of government regulated prices (administered price), respectively an inflation of 0.26 percent ,

Overall, the rate of inflation during the month of June, which contained therein-fasting month, considered low. This indicates that the government and Bank Indonesia has done the preparation in anticipation of price hikes due to the fasting month is good enough.

The following are the commodities, which become supporting and inhibiting inflation in June 2015:

Commodities that causes inflation:

1.    Chicken meat, contribute to the inflation in June amounted to 0.06 percent
2.    Red Chili, contributing of 0.06 percent
3.    Chicken eggs, contributing of 0.05 percent
4.    Petrol, contributing of 0.03 percent
5.    Rice, contributing of 0.02 percent

Commodities that inhibit inflation (deflation causes):

1.    Tomato vegetable, contributing of -0.01 percent
2.    Rates of air transport, contributing of -0.01.

 (MH/ES)