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March core inflation recorded at 3.03% yoy

02 April 2019 07:08

JAKARTA. Core inflation in March 2019 slowed down from 0.26% (mtm) in February 2019 to 0.16% (mtm). The main commodities contributing to inflation in the core group are housing contracts, jewelery gold, and wages for domestic servants.

Year on year, core inflation was recorded at 3.03% (yoy), slowing down compared to the previous month's inflation of 3.06% (yoy). Controlled core inflation is inseparable from the consistency of Bank Indonesia's policies in directing inflation expectations, including in maintaining exchange rate movements in accordance with its fundamentals.

The Bank Indonesia press release revealed that the March 2019 Consumer Price Index (CPI) was recorded at 0.11% (mtm), after a deflation of 0.08% (mtm) last month. Inflation in March was influenced by increases in administered price inflation, while core group inflation slowed and the volatile food group again recorded deflation.

With this development, annual CPI inflation reached 2.48% (yoy), slowing down from last month's inflation of 2.57% (yoy).

Administered prices inflation rose on the back of rising air freight rates. The administered prices group in March 2019 experienced inflation of 0.08% (mtm), a slight increase compared to the previous month's inflation of 0.06% (mtm). The increase in inflation came mainly from the increase in air freight rates while the gasoline group and electricity tariffs recorded deflation. On an annual basis, the administered prices group recorded inflation of 3.25% (yoy), slowing compared to 3.38% (yoy) in the previous month.

Going forward, Bank Indonesia will consistently maintain price stability and strengthen policy coordination with the Government, both at the central and regional levels, to ensure inflation remains low and stable within the inflation target range of 3.5 ± 1% in 2019.

Meanwhile, the volatile food group again recorded deflation in March 2019 according to its seasonal pattern. The volatile food group in March 2019 recorded a deflation of 0.02% (mtm), after deflation in the previous month of 1.30% (mtm). The volatile food deflation mainly originated from the commodity of chicken, rice, fresh fish, broiler eggs, vegetable tomatoes and carrots. Meanwhile, the shallot, garlic, papaya and red chili groups recorded inflation. Year on year, volatile food inflation was recorded at 0.16% (yoy), slowing compared to the previous month's condition of 0.33% (yoy). (AM/MS)

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