Consumer Price Index: Deflation Due to a Drop in Prices of Foodstuff Commodities
In September Indonesia’s consumer price index (CPI) deflated by 0.27 percent month-to-month (m/m), particularly due to a decline in food commodity prices. This is good news as we had detected some potential threats to Indonesia’s inflation rate in the August 2019 edition of out monthly report. Meanwhile, Indonesia’s core inflation has remained stable, signaling that deflation is not caused by weakening purchasing power.
In fact, Suhariyanto, Head of Statistics Indonesia (BPS) that always releases the country’s consumer price data at the start of the month, said Indonesians’ purchasing power remains firm. He added that while Indonesian inflation is under control, there is the need to remain cautious ahead of the holiday period around the turn of the year (specifically Christmas and New Year celebrations).
Read the full article in the September 2019 edition of our monthly research report. You can purchase the report by sending an email to [email protected] or a WhatsApp message to the following number: +62(0)8788.410.6944
