0.93 Percent Inflation Recorded In July 2015

Jakarta (Antara Bali) -- The Central Bureau of Statistics (BPS) has announced that the country's inflation in July was 0.93 percent, mainly due to an increase in transportation costs and food commodity prices.

According to the BPS, food prices and transportation fares were the major contributors to the inflation in July. "Food commodities were still the biggest contributor to the inflation rate, followed by transpiration costs. There were high flows of Eid Fitr travelers in July this year. This made a significant contribution," BPS Chief Suryamin said here on Monday.

As food commodity prices increased in almost all parts of the country, it made the largest contribution to the rate of inflation in July.

"Transportation costs, mainly air and intercity bus transportation fares, rose before and after Eid Fitr," Suryamin stated, adding that food prices also contributed considerably to the relatively high inflation as the prices increased before and during the Muslim post-fasting Idul Fitri festivities.

However, inflation in July 2015 was unchanged from that in the same month last year, bringing the total inflation to 1.9 percent in the first seven months of the year. Year-on-year, the inflation in July was 7.26 percent.

"The price of rice was not too high and could be relatively curbed, even though grand harvests ended. But other commodities experienced hikes in prices in the run-up to and during the fasting month and the Lebaran festivities," he remarked.

He further noted that the 0.93 percent July 2015 inflation was the same as that in July last year, but the cause was different.

Moreover, the core component of inflation in July 2015 was recorded at 0.34 percent month-to-month and 4.86 percent year-on-year. This is an indicator of stable economic conditions.

"The core component inflation dropped to 4.86 percent from 5 percent three months ago. This means that on the whole, economic components developed positively and well," Suryamin affirmed.

In addition, Coordinating Minister for Economic Affairs Sofyan Djalil pointed out that the country's inflation was under control in the first half of the year.

"Inflation was well under control during Ramadan in July. Even though it rose, it was still good. This indicates that regional inflation teams performed effectively," he said on Monday.

According to Djalil, the government was successful in ensuring price stability in June and July.

If this performance can be maintained till the end of the year, he added, the inflation target of 5 percent set for the whole year will be reached.      

"I think we did a good job this year in maintaining inflation within the target figure," he remarked. (WDY)