Inflationary pressures on volatile foods lower in november: BI

Jakarta (ANTARA News) – Inflationary pressures on volatile foods (VF) were lower than the historical trend in November 2018, Director at Communication Department, Bank Indonesia (BI), Junanto Herdiawan said.

Volatile foods experienced 0.23 percent (mtm) inflation in the reporting period, increasing from 0.17 percent (mtm) the month earlier, which was still below the historical average in November for the past three years at 0.86 percent (mtm), based on a statement received here on Thursday.

Annually, volatile foods recorded 4.32 percent (yoy) inflation, down from 4.48 percent (yoy) in the previous period.

Price pressures on volatile foods in November 2018 stemmed from shallots, rice, purebred chicken eggs, tomatoes, and carrots.

In contrast, red chilies, purebred chicken meat, melon, papaya, bird?s eye chilies, and cooking oil experienced price corrections.

Despite increasing from the previous period, inflationary pressures on administered prices (AP) were kept under control.

AP inflation was recorded at 0.52 percent (mtm) in November 2018, accelerating from 0.32 percent (mtm) the month earlier.

AP edged upwards due to rising airfares, as a result of increasing demand during the approaching yearend.

AP inflation was further exacerbated by the knock-on effect of higher special fuel prices in October 2018, coupled with rising prices of filtered and unfiltered clove-flavorred cigarettes in November 2018.

Annually, AP posted 3.07 percent (yoy) inflation, up from 2.74 percent (yoy) the month earlier.

BI considers controlled inflation to be the result of policy consistency to anchor rational inflation expectations, thus supporting the inflation target at 3.5?1 percent in 2018.

Moving forward, BI will consistently maintain price stability and strengthen policy coordination with the central government and regional administrations to maintain low and stable inflation.

Source: ANTARA News