Gold price - main contributor to August inflation

Gold price - main contributor to August inflation

(ANTARA/Yudhi Mahatma)

The price of gold is up 0.11 percent compared to July due to increasing international price."
Jakarta (ANTARA News) - Gold price is the main contributor to August`s inflation, which is recorded at 1.12 percent, according to the National Statistics Agency (BPS).

"The price of gold is up 0.11 percent compared to July due to increasing international price," BPS chief Suryamin said here on Monday.

He added that the price of gold jewellery, which is part of the clothing group, suffered an inflation in the 57 Consumer Price Index cities contributing 0.12 percent to the month`s inflation.

"The highest increase in the price of gold is recorded in Padang (West Sumatra) at 15 percent, followed by Jember (East Java) at 13 percent," he said.

He said other commodities that contributed to the month`s inflation were fresh fish by 0.11 percent, electricity tariff 0.1 percent, city transportation fees 0.09 percent, shallot 0.07 percent, potato and air fare each by 0.04 percent, rice, tomato, vegetables and coconut each by 0.03 percent.

"The price of fresh fish rose because of a climate change that has reduced fishing while the hike in air fare is caused by increasing demand before and after the post-fasting holiday," he said.

Other commodities that have contributed 0.02 percent each to the month`s inflation are beef, noodle, rice and side dishes, wage of bricklayers, elementary and senior high school fees and recreation cost.

"Noodle and rice, with its side dishes have contributed to the inflation due to the increasing price of raw materials while the hike in school fees is caused by new school year," he said.

The BPS has recorded a 1.12 inflation in August to make inflation the calendar year from January to August to reach 7.94 percent and annual inflation to 8.79 percent.

Bank Indonesia, the central bank, is predicting inflation would be between 9.0 and 9.8 percent by the end of the year, which is higher than the government`s expectation in the revised 2013 budget at 7.2 percent. ***3***

Reported by Satyagraha

(H-YH/INE/B003)

(T.SYS/B/KR-BSR/B003) 02-09-2013 15:32:11

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