North Sumatra Experiences 0.06% Deflation in October 2021

The Central Statistics Agency (BPS) reported that North Sumatra experienced deflation of 0.06% month-to-month (m-to-m) in October 2021. This occurred after three of the five cities used as consumer price index (CPI) benchmarks in the region experienced deflation.

Three cities in North Sumatra that experienced deflation were Pematangsiantar (0.36%), Medan (0.05%), and Gunung Sitoli (0.07%). Meanwhile, the other two cities, Sibolga and Padangsidimpuan, experienced deflation of 0.11% and 0.06%, respectively.

The deflation in Sumatra last month was the fourth time this year. Previous deflation in the province occurred in February, March, and August 2021. North Sumatra recorded deflation of 0.33% (m-to-m) in February 2021. The following month, the province experienced deflation of 0.03% (m-to-m). Then, in August 2021, the province experienced deflation of 0.1% (m-to-m).

Furthermore, according to BPS, deflation in North Sumatra occurred due to a decrease in prices from three expenditure groups. For example, in Medan, deflation was impacted by a decrease in prices in the food, beverages, and tobacco group (0.15%), the household equipment, appliances, and routine maintenance group (0.65%), and the recreation, sports, and culture group (0.41%).

Conversely, six expenditure groups experienced inflation. The clothing and footwear group experienced inflation of 0.02%, the health group 0.10%, and the transportation group 0.16%. The information, communication, and financial services group experienced inflation of 0.01%.

The food and beverage/restaurant group experienced inflation of 0.11%. The personal care and other services group experienced inflation of 0.26%. The remaining two groups, namely housing, water, electricity, and household fuel, and the education group, showed no index change.