In the meantime, in the fourth quarter last year the inflation in the province reached 0.92 pct, or 4.29 pct.
Surabaya, E Java (ANTARA News) - Bank Indonesia (BI) Surabaya office estimated that inflation in East Java in the first three months this year increased to 1-1.5 percent compared to the fourth quarter last year.

"In the meantime, in the fourth quarter last year the inflation in the province reached 0.92 pct, or 4.29 pct," head of the Surabaya BI office Mohammad Ishak said in Surabaya Tuesday.

He said the inflation in East Java is at the lower end of the national inflation last year, or equal to five percent plus minus one pct.

"The increase in the first quarter of this year is predicted to have been affected by the planned government`s plan to make adjustments to rice purchase basic prices (HPP) by 28 pct," he said.

He said the price movements of foodstuffs like rice has generally triggered the inflation, especially that foodstuffs are main commodities of the people in their daily life.

"In non-fundamental aspects, price movements of volatile food in the first quarter of this year may increase compared to the same period last year," he said.

In case of an increase, he added, it would still be balanced by the rice harvest season, predicted in February and March 2012. And the grand harvest will take place from April to May 2012.

"In the meantime, the inflation in the first quarter of 2012 was also the result of various policies including import duty on food products and food material as well as raw materials of livestock feed and certain fertilizers," he said.

Under the policies, he said, there has been an import duty increase from nil to five percent as of January 1, 2012. The commodity affected by this policy included wheat, soybean, corn flour and rice flour.

"This regulation may also trigger an inflation in the ready food sub-group like instant noodle and other processed wheat four," he said.

On the other hand, head of the East Java Central Bureau of Statistics Irlan Indrocahyo said the increase in the inflation in East Java has generally been the effect of main foodstuff price hikes like rice, sugar, and pure-bred chicken.

"For example in January 2012 the inflation in East Java reached 0.35 pct die to an increase in foodstuffs like pure-chicken from Rp28,900 per kilogram (December 2011) to Rp29,700 per kilogram," he said.

(H-NG/A014)

Editor: Ella Syafputri
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