The drop in flight fares contributed a deflation of 0.11 percent in the group of transportation, communication and financial services due to the low-cost policy for certain routes and hours. The deflation was recorded in 47 cities. It reached 22 perc
Jakarta (ANTARA) - The inflation rate in Indonesia rose 0.12 percent in August 2019, driven by a surge in several commodity prices, the Central Statistics Agency (BPS) announced. The rise in the price of such commodities as red chili and birds eye chili was caused by the drought which affected the production of food crops, BPS Chairman Suharyanto said at a press conference in Jakarta Monday.

The other cause of inflation was an increase in gold jewelry prices, tuition fees and house rents.

The surge in the prices of red chili and birds eye chili respectively contributed 0.1 percent and 0.07 percent to the inflation from the group of foodstuffs due to declining supplies, the BPS chief noted.

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The skyrocketing prices of red chili caused by low supplies in the dry season caused inflation in 62 cities surveyed for consumer price index in August 2019. "For instance, the increase was recorded at 54 percent in Mamuju and 14 percent in Kupang," he said.

The rise in the gold price in the world market contributed 0.05 percent to the inflation from the group of clothing, he said.

The increase in tuition fees, recreation and sports contributed 0.04 percent, 0.02 percent and 0.01 percent respectively to the inflation, he said.

The rising house rents added 0.02 percent to the inflation from the group of housing, water, electricity, gas and fuel.

However, the decline in flight fares resulting from a low-tariff policy for certain routes and hours and the drop in the prices of onion, garlic and tomato reduced the inflation in August 2019.

"The drop in flight fares contributed a deflation of 0.11 percent in the group of transportation, communication and financial services due to the low-cost policy for certain routes and hours. The deflation was recorded in 47 cities. It reached 22 percent in Kendari, and 21 percent each in Solo and Mataram," he said.

The August 2019 inflation brought the calendar inflation from January to August 2019 to 2.48 percent and year-on-year inflation to 3.49 percent. (INE)

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Translator: Satyagraha/Suharto
Editor: Fardah Assegaf
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