Highlights of Inflation in October 2018
In October, Indonesia posted inflation of 0.28% m-m, higher than the deflation of 0.18% m-m in September. Based on the updated circumstances, on a cumulative basis, October’s inflation was 2.22% YTD. Meanwhile, on an annual basis, October’s inflation was 3.16%, higher than September’s inflation of 2.88%. October’s inflation ended 2 consecutive-month deflation.
Adjustment to Prices of Non-Subsidized Petroleum
All components — core, administered prices, and volatile — posted inflation. The administered prices posted inflation of 0.32% m-m in October after posting no change in September. October inflation in administrated prices was attributable to the adjustment to prices of non-subsidized petroleum. On October 10th, 2018, Pertamina increased selling prices of non-subsidized petroleum products, namely Pertamax, Pertamax Turbo, Pertamina Dex, and Dexlite, with the average hike of 9.5%-16.7%. On an annual basis, the administrated prices posted inflation of 2.74% y-y, higher than September’s inflation of 2.40% y-y.
Meanwhile, the volatile component posted inflation of 0.17% m-m in October, after posting deflation of 1.83% m-m and 1.24% m-m in two prior months. Inflation in the volatile component was mainly prompted by the hike in a number of foodstuff prices such as red chili peppers, rice, and oranges.
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