Inflation in March Recorded at 0.1%

JAKARTA. The Central Statistics Agency (Badan Pusat Statistik /BPS) noted a number of commodity prices have increased. It can be seen from the inflation rate throughout March 2020 which was recorded at 0.10% month on month (mom).

The inflation rate is lower than the monthly inflation in the same period in 2019, which recorded at 0.11%.

Some commodities that experienced an increase in prices include gold jewelery, chicken eggs, onions and granulated sugar. While some commodities that have decreased prices are red chili pepper, cayenne pepper, fresh fish, garlic and cooking oil. 

Based on expenditure group, equipment and routine household maintenance groups experienced the highest inflation of 0.28% mom. The food, beverage and tobacco group which contributed 0.3% experienced inflation of 0.10% mom.

Inflation Rate	2018	2019	2020
March (Month on Month	0,20%	0,11%	0,10%
Calendar Year (Year to Date)	0,99%	0,35%	0,76%
Year on Year	3,40%	2,48%	2,96%

Source : BPS

Meanwhile, if seen from the annual inflation rate, in March 2020 inflation is 2.96% higher than the annual inflation in the same period in 2019 which was 2.48% and in 2018 it was 3.40%.

According to BPS, the current inflation rate is controlled and stable.  However, the government is asked to ensure the supply of food and other necessities are available before the month of Ramadan which will begin at the end of April 2020.

The government in the 2020 State Budget (APBN) targets the inflation rate to be at 3.1% yoy.  However, in its development the government estimates that the inflation rate in 2020 could be at the level of 3.9%, it could even increase to 5.1% if the outbreak of Corona Virus Disease 2019 (Covid-19) is not immediately handled properly.  (ASP/Ken)