Jakarta (ANTARA News) - Inflation in Indonesia reached 0.05 percent in February, according to the head of the Central Statistics Agency (BPS).

BPS head Suryamin said here on Thursday that February's inflation rate has been primarily caused by the rising prices of gold, jewelry, rice and shallot.

"The price of gold and jewelry churned in 63 Consumer Price Index (CPI) cities," Suryamin said.

Of note, the inflation rate in February 2012 was recorded as the lowest rate of inflation since 2007.

Suryamin added that that gold and jewelry accounted for 0.7 per cent of the increase, rice 0.05 percent and 0.02 percent from shallot.

The gold and jewelry price increased by 6 to 7 percent in Cilegon, Probolinggo and Maumere due to global price increases, he said.

Also, rice prices rose in 55 CPI cities, while only decreasing in eight cities.

Shallot prices also increased because of decreases in supply due to the rainy season as the price rose in 39 CPI cities as much as 33 percent.

Meanwhile, commodities contributing to deflation included red peppers, tomatoes and chicken meat.

According to Suryamin, the red pepper prices fell in 62 CPI cities, tomato prices also fell in 38 CPI cities and the price of chicken meat dropped in 35 CPI cities.

"These three commodities were having an excess of supply," he said.

Thus, the inflation rate of January-February 2012 reached 0.81 percent with annual inflation (yoy) reaching 3.56 percent, while the component core inflation was recorded at 0.33 percent and the annual core inflation (yoy) at 4.31 percent.

Suryamin said that among the 66 CPI cities, there are 44 cities experiencing inflation, while 26 others are reporting deflation.

Mataram city in West Nusa Tenggara experienced the highest inflation rate of 1.73 percent, followed by 1.7 percent in Pontianak, West Kalimantan.

"Meanwhile, the lowest inflation occurred in Tangerang, Banten at 0.03 percent," he said.

Also, cities that contributed to the month`s deflation are Jambi with 1.29 percent and Sibolga with 1.23 percent.

Editor: Priyambodo RH
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