Highlights of Inflation in December 2018
In December 2018, Indonesia posted the inflation of 0.62% m-m, higher than that in November of 0.27% m-m. Meanwhile, on annual basis, December’s inflation was at 3.13%. The figure was much lower than the inflation of 3.61% in 2017 and the 3-year average inflation of 3.33%.
Determiners: Higher Demand in Year End
Such seasonal factor as the higher demand in year-end drove December’s inflation to soar. It was portrayed from such inflation components as volatile and administrated prices, soaring significantly. The volatile components posted the inflation of 1.55% m-m, much higher than that in November of 0.23% m-m. The volatile inflation mainly derived from such commodities as broiler eggs, broiler chicken, shallots, rice, and fresh fish.
Meanwhile, in December 2018, the administered prices component posted the inflation of 1.20% m-m, higher than that in November of 0.52% m-m. This component posted inflation mainly sourcing from the hike in transportation prices of flight, trains, intercity transportation tariffs. Additionally, on an annual basis, the administrated prices component posted the inflation of 3.36%, much higher than that of 3.07% in November.
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