Inflation of February 2019
February’s deflation of 0.08% m-m fell at the sharpest as regards January’s inflation of 0.32% m-m. On a cumulative basis, February’s inflation was at 0.24% YTD. But, on an annual basis, February’s inflation was at 2.57%, much benign than that of 2.82% in January and the lowest since November 2009.
Deep Corrections to Foodstuff
February’s deflation mainly sourced from foodstuff deflation of 1.11% m-m, plunging compared to January’s inflation of 0.92% m-m. February’s deflation fitted into the seasonal pattern but plunged to the deepest among February’s deflation since 2015 when foodstuff deflation hit 1.47% m-m. The downwards in foodstuff prices of February continued January’s downwards. Such commodities as broiler chicken, red chilies, broiler eggs, shallots, chilies, fresh fish, carrots, and oranges contributed to deflation. Meanwhile, commodities i.e. rice, instant noodles, onions, contributed to inflation.
Foodstuff deflation in February 2019 was signaled by deflation of volatile components. That reflected the volatile prices of foodstuff in Indonesia. The volatile component posted February’s deflation of 1.30% m-m, plunging compared to inflation of 0.97% m-m in January.
On the other side, deflation stemmed from the energy component posting deflation of 0.28% m-m. It was attributable to the dropping prices of non-subsidized fuels—Pertamax and Pertamax Turbo—taking into effect on February 10th, 2019.
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