Graha Surveyor Indonesia 16th Floor Jl.jend.Gatot Subroto Kav. 56 Jakarta 12950 - Indonesia phone. (6221) 5265188 - 89 Fax. (6221) 5265190
Graha Surveyor Indonesia 16th Floor Jl.jend.Gatot Subroto Kav. 56 Jakarta 12950 - Indonesia phone. (6221) 5265188 - 89 Fax. (6221) 5265190
Graha Surveyor Indonesia 16th Floor Jl.jend.Gatot Subroto Kav. 56 Jakarta 12950 - Indonesia phone. (6221) 5265188 - 89 Fax. (6221) 5265190

Agustina Melani

02 Jan 2018, 20:36 WIB

 

Liputan6.com, Jakarta - Bank Indonesia (BI) assesses the inflation target can be met in three consecutive years. It saw the development of consumer price index inflation (CPI) in December 2017 recorded 0.71 percent (mtm). Annually it reached 3.61 percent.

BI said the inflation was in line within the inflation target range set at four plus minus one percent.

The controlled inflation in 2017 is driven by the low of core inflation at 2.95 percent (yoy), in line with the consistency of Bank Indonesia's policy of maintaining exchange rate stability and driving inflation expectations.

 

In addition, the low volatile food inflation was recorded at 0.71 percent (yoy), the lowest in the last 14 years, as supply and distribution of foodstuffs were maintained; as well as the controlled impact of rising tariffs in administered prices inflation of 8.70 percent (yoy).

In addition, inflation in 2017 is also supported by positive demand and supply factors, low external pressure, and strong policy coordination between BI and the Government at the Central and Regional levels.

CPI inflation in December 2017 increased compared to last month (0.20 percent, mtm) in accordance with its seasonal pattern. Inflation in December 2017 was lower than the December inflation rate in the last three years of 1.28 percent (mtm).

On the component, inflation in the month was mainly affected by volatile foods inflation and administered prices amid low core inflation.

Core inflation was recorded at 0.13 percent (mtm), the same as last month. These developments are in line with inflation expectations, low domestic demand, stable exchange rates and low global prices.

The volatile foods group recorded inflation of 2.46 percent (mtm), up from 0.38 percent (mtm) last month. Inflation mainly comes from rice, fresh fish, eggs and chicken meat, red peppers, tomatoes and cayenne pepper.

The administered prices group experienced inflation of 0.91 percent (mtm), up from 0.21 percent (mtm) last month. These developments were mainly driven by increases in air freight rates, rail fares and inter-city transport in line with the holiday season and non-subsidized gasoline adjustments. In addition, inflationary pressure on administered prices was also driven by increases in the rates of various cigarettes.

Looking ahead, inflation is expected to return to the target of inflation in 2018, which is 3.5 plus minus or percent. Policy coordination between central and regional governments, and Bank Indonesia will continue to be strengthened in the control of inflation.

Earlier, the Central Bureau of Statistics (BPS) reported inflation in December 2017 of 0.71 percent. As for the inflation year calendar or from January to December amounted to 3.61 percent.

"The inflation rate is good because it is far from the target of the State Budget (APBN) at 4.3 percent," said BPS Head Suhariyanto at BPS Office, Jakarta, Tuesday 2 January 2018.

Suhariyanto continued, in December, of the 82 cities included in the calculation, all experienced inflation. The highest inflation was experienced by Jayapura with 2.28 percent. As for the lowest figure is Sorong with inflation at 0.18 percent.

Inflation in Jayapura is quite high due to the increase in air freight rates. "In general, indeed in 2017 it shows an increase," said Suhariyanto.

Annual inflation in 2017 is above 2016 which recorded 3.02 percent and 2015 at 3.35 percent. But it is under 2014 which recorded 8.36 percent and 2013 at 8.38 percent.

Commodities that drive inflation in 2017 are electricity tariffs that have a share of 0.81 percent and followed by STNK renewal fees that reach 0.24 percent. In addition, fresh fish also boosted inflation by 0.20 percent.

Graha Surveyor Indonesia 16th Floor

Jl.jend.Gatot Subroto Kav. 56

Jakarta 12950 - Indonesia phone. (6221) 5265188 - 89 Fax. (6221) 5265190