JAKARTA (Rambu Energy) – Indonesia posted year-on-year (yoy) inflation of 4.53 percent in September compared to 3.99 percent yoy in August, driven by a rise in food prices, Central Bureau of Statistic (BPS) announced on Wednesday (Oct 1).
Month-on-month inflation in September was up 0.27 percent, compared to 0.47 percent in August. Meanwhile, inflation year-to-date (January-September) was at 3.71 percent.
Food products posted inflation of 0.51 percent; housing, water, electricity, gas and fuel rose 0.77 percent; health products rose 0.29 percent; education and recreation and sport increased by 0.69 percent.
The increase in prices was offset by a decline in other group of products. The statistic agency data shows food materials declined by 0.17 percent, clothing, including gold accessories, edged down 0.17 percent, while transportation, communication and financial service declined by 0.24 percent.
Year-on-year core inflation in September (September 2014 against September 2013) stood at 4.04 percent.
Indonesia’s inflation figures suggest “mild but improving economic activity,” Glenn Maguire, ANZ chief economist for South Asia, ASEAN and Asia Pacific said in its daily report.
Under the revised 2014 State Budget, the government has assumed inflation rate for 2014 at 5.3 percent. (*)