In August 2018, Badan Pusat Statistik (BPS) reported a 0.05% deflation compared to the previous month. This was the first deflation in a year, driven by price decreases reflected in several expenditure group indices. These included a 1.1% decrease in the food index, a 0.07% decrease in the clothing index, and a 0.15% decrease in the transportation, communication, and financial services index. Conversely, price increases were observed in processed food, beverages, tobacco, and cigarettes (0.35%) and recreation and sports (1.03%).
The calendar year inflation rate (January-August 2018) reached 2.13%, while the year-on-year inflation rate (August 2018 compared to August 2017/YoY) was 3.2%. Of the 82 cities surveyed, 52 experienced deflation, while the remaining 30 experienced inflation.
The core component showed inflation of 0.13% in August 2018. The calendar year inflation rate (January-August 2018) for the core component reached 2.09%, while the year-on-year inflation rate (August 2018 compared to August 2017/YoY) was 2.9%.