Indonesia’s Inflation at 0.16% in April

JAKARTA ~ Indonesia’s monthly inflation rate fell 0.16 percent in April compared with 0.24 percent in March, Central Bureau of Statistics chief Rusman Heriawan said.

He said lower food prices helped curb the monthly consumer price index.

The annual rate of inflation reached 6.29 percent in April from the same month in 2006, as against 6.52 percent in March, he said.

A 1.3-ercent drop in food prices, especially for rice and chilli, was responsible for the easing in monthly inflation, while prices of education and recreation were down 0.03 percent.

“In April, rice prices fell 5.16 percent from March,” he said.

Heriawan said prices of processed food, tobacco and beverages rose 0.38 percent month-on-month while housing prices were up 0.26 percent.

Clothing prices rose 0.61 percent, healthcare was up 0.32 percent and the price of transportation and communication moved up 0.22 percent.

Prices of all other components rose in April compared to March, he said.

He said the decline in food prices was not surprising as the rice harvest peaked in April, while at the same time the government continued to import the grain.

The World Bank had urged Indonesia to end its ban on rice imports as the fastest way for the government to reduce poverty quickly.

CIMB GK economist Kahlil Rowter said the monthly reduction beat market predictions that were expecting a slight pullback or mild rise.

“The extent of the softening in April CPI is certainly better than I had expected and I think it is also better than most analysts had picked,” Rowter said.

Filed under:

Comments are closed.