Core Inflation to stand at 3.02%YoY

Volatile prices of staple foodstuffs such as rice to spike inflation remain stable in 2019. Prices of rice in 2018 made up the greatest proportion to inflation, but 2019’s adequate rice supply by Bulog ensured that rice was not the main culprit to cause volatile inflation. Another to 2018’s rising rice prices, 2018’s year-end hike in fuel prices and airplane ticket prices left 2018’s inflation higher than that of 2019. Of note, 2019’s core inflation standing at 3.02% equal with prior year reading. A subtle distinction between the 2018 and 2019 inflation was administered prices. The 2018’s administered prices of 3.36% contributed 0.66% to the core inflation, whereas 2019’s same percentage of administered price made up a smaller proportion to 2019’s inflation of 0.51% underlined by subtle prevailing policies the two-consecutive years.


2019’s Inflation to Stand Below 3%

The 2019’s inflation of 2.72% to stand below the government targeted level of 3.5% was a 10-year low. The 10-year inflation levels are as follows 2009’s figure of 2.78%; 2010’s figure of 6.96%; 2011’s figure of 3.78%; 2012’s figure of 3.65%; 2013’s figure of 8.08%; 2014’s figure of 8.36%; 2015’s figure of 3.35%; 2016’s figure of 3.02%; 2017’s figure of 3.61%; and 2018’s figure of 3.13%. The 2019’s figure revealed volatile prices inflated to 4.3% contributing 0.77% to the 2019’s inflation. Meanwhile, the 2019’s core inflation constituted 1.65% to the 2019’s total inflation. In addition, administered prices inflated to 0.51% to contribute 0.51% to 0.10% inflation.

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