Inflation Remains Controlled Despite the Increasing Price of Food and Energy - Bank Sentral Republik Indonesia
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August 20, 2018

No. 20/ 16 /DKom

Consumer Price Index (CPI) inflation in February 2018 remains controlled within the targeted range. CPI inflation in February 2018 is recorded 0.17% (mtm), decreasing compared to the previous month of 0.62% (mtm). Such decrease is attributable to the core inflation and volatile food lower than the previous month, amidst the increasing inflation of administered prices. With such development, as of February, CPI inflation is recorded 0.79% (ytd) or annually 3.18% (yoy), slowing down compared to the previous month of 3.25% (yoy).

Core inflation decreases. Core inflation is recorded 0.26% (mtm), lower than the previous month of 0.31% (mtm). Main commodities contributing to the core inflation are gold jewelleries. Annually, core inflation is recorded 2.58% (yoy). Such development closely relates to the consistent policies applied by Bank Indonesia on directing expected inflation and maintaining exchange rate stability.

Inflation of volatile food also decreases despite the rice price pressure. Inflation of volatile food is recorded 0.10% (mtm), lower than the previous month of 2.58% (mtm). Inflation primarily comes from rice, garlic, and shallots. Annually, inflation of volatile food is recorded 3.10% (yoy).

Increasing inflation of administered prices group comes from energy. Inflation of administered prices in February 2018 reaches 0.07% (mtm) after deflation of 0.15% (mtm) in the previous month. Inflation is primarily attributable to adjustment to non-subsidized fuel price and electricity tariff. In this group, deflation occurs to air transportation and household fuel. Annually, administered prices record inflation of 5.29% (yoy).

Going forward, inflation is estimated to remain within the targeted inflation in 2018, namely 3.5%±1% (yoy). Policy coordination between the Government and Bank Indonesia in inflation control will be further strengthened, primarily to anticipate risks of increasing inflation of volatile food.

Jakarta, 1 March 2018
Communication Department

Arbonas Hutabarat
Director

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