Indonesia records inflation of 0.09% in April

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After seeing deflation a month earlier owing to the harvest season, the country recorded monthly inflation of 0.09 percent in April on account of increases in the prices of most commodities.
Inflation in April brought annual inflation to 4.17 percent year-on-year (yoy), the Central Statistics Agency (BPS) announced on Tuesday.
“I think inflation at 0.09 percent in April remained in line with what the government is trying to manage because there will be bigger challenges in May and June,” said BPS head Suhariyanto in a press conference.
The agency warned prices of food commodities could increase in May due to rising demand during Ramadhan.
In June, Suhariyanto said, prices would rise as an effect of the second hike of electricity rates for 900 volt-ampere (VA) capacity in May.
“The electricity rate increase will occur in May, but the impact will only be seen in June because most customers of 900 VA are post-paid type rather than prepaid,” he said.
The price increases in April occurred in administered prices, particularly electricity and fuel, as well as in a number of food commodities such as garlic, chicken, tomato and dogfruit.
Meanwhile, price decreases in April were seen in major food commodities such as red and green chili, rice, sugar, beef and chicken eggs. (bbn)
Questions & Answers
Q.Why did Indonesia experience inflation in April after deflation the month prior?
Why did Indonesia experience inflation in April after deflation the month prior?
Monthly inflation of 0.09 percent in April occurred due to price increases across most commodities. This followed deflation in March, which was attributed to the impact of the harvest season.
Q.What is the Central Statistics Agency's forecast for inflation in the upcoming months?
What is the Central Statistics Agency's forecast for inflation in the upcoming months?
The agency anticipates bigger challenges in May and June. They warned of potential food commodity price increases in May due to Ramadhan demand, and in June due to a second electricity rate hike for 900 VA customers.
Q.Which specific items saw price increases and decreases in April?
Which specific items saw price increases and decreases in April?
Price increases in April affected administered prices like electricity and fuel, along with food items such as garlic, chicken, tomato, and dogfruit. Conversely, red and green chili, rice, sugar, beef, and chicken eggs saw price decreases.
Q.Why will the impact of the electricity rate increase be felt in June, despite occurring in May?
Why will the impact of the electricity rate increase be felt in June, despite occurring in May?
The electricity rate increase for 900 VA customers will occur in May, but its impact will only be seen in June. This is because most customers with this capacity are on a post-paid system rather than prepaid.
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