BI: Indonesia Records 0.04 Percent Deflation in August
LiputanIslam.com— Bank Indonesia (BI) predicted that there would be a deflation of 0.04 percent (mtm) in August. This is based on a price survey conducted by BI in the fourth week.
“With these developments, the inflation forecast for August 2020 on a calendar year is 0.94 percent (ytd) and on annual basis is 1.34 percent (yoy),” Chief of the BI’s communication Department, Onny WIdjanarko said on Friday (28/8).
The deflation was mainly contributed by the price of purebred chicken meat by -0.15 percent (mtm), red onions by -0.08 percent (mtm), oranges, tomatoes, and purebred chicken eggs by -0.02 percent (mtm) each.
Meanwhile, the commodities contributing to inflation were gold jewelry by 0.01 percent (mtm), cooking oil by 0.02 percent (mtm), and red chili by 0.01 percent (mtm).
Onny said that BI would continue to strengthen coordination with the government and relevant authorities to closely monitor the dynamics of the spread of the COVID-19 pandemic and its impact on the Indonesian economy from time to time.
“As well as further policy coordination steps that need to be taken to maintain macroeconomic and financial system stability, as well as to sustain sound and resilient economic growth in Indonesia,” he remarked.
For information, deflation is a condition showing that the purchasing power of money increases over a certain period because the amount of money that spreads is relatively more decreasing than the amount of goods and services that are available. (sh/kompas/medcom/katadata)