BPS signals improving purchase power

BPS signals improving purchase power

A culinary market in Pekanbaru. The Central Statistics Agency (BPS) has indicated that the people's purchasing power has begun to improve, citing core component inflation, one of its key indicators, which grew positively to reach 0.05 percent in December, 2020. (ANTARA/Frislidia/ac)

Jakarta (ANTARA) - The Central Statistics Agency (BPS) has indicated that the people's purchasing power has begun to improve, citing core component inflation, one of its key indicators, which grew positively to reach 0.05 percent in December, 2020.

"The public purchasing power, where core inflation is an indicator, was recorded to have had positive growth in December, 2020," said Setianto, deputy for statistics distribution and services at BPS, at an online press conference in Jakarta on Monday.

Despite the positive growth, core inflation has shown a declining trend in the last month, he informed.

On a monthly basis, the increase in core inflation began to be seen from October, 2020, when it reached 0.04 percent. The figure then jumped to 0.06 percent in November and fell to 0.05 percent in December, 2020.

Meanwhile, yearly inflation reached 1.60 percent, as calculated at the end of 2020, Setianto said.

However, he noted, to see whether purchasing power has improved, it would also be necessary to factor in the level of household consumption and stretching demand in the market.

“But, in general, we can hope that people's purchasing power will continue to improve in the future," he added.

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Meanwhile, the other two components that make up inflation include the administrative price, which reached 0.35 percent in December, 2020, and the volatile price of commodities, which touched 2.17 percent, he informed.

Generally speaking, in 2020, inflation began to increase from October, when it reached 0.07 percent, and then climbed further to 0.28 percent in November and 0.45 percent by December, Setianto said.

Throughout 2020, inflation was recorded at 1.68 percent, the lowest level since 2014.

According to the BPS, the 10 commodities that contributed significantly to national inflation during 2020 included gold jewelry, with the highest inflation for one year at 0.26 percent, followed by red chillies (0.16 percent), and cooking oil (0.10 percent).

Furthermore, filter clove cigarettes and white kretek cigarettes each contributed 0.09 percent, and chicken meat 0.05 percent to inflationary pressures.

Meanwhile, eggs, fresh fish, rice dishes, and college tuition fees contributed 0.04 percent each to inflation. (INE)

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