December 2018 Inflation Reached 0.62%, The Highest in the Last 11 Months

The Central Statistics Agency (BPS) released data in December 2018 showing inflation of 0.62% from the previous month (MoM), the highest in the past 11 months. This figure is lower than December 2017's 0.71%, but higher than December 2016's 0.42%. Meanwhile, inflation for the period January-December 2018 was 3.13%, lower than the same period in the previous year at 3.61%.

Increased demand for goods in anticipation of Christmas and New Year's celebrations in 2019 fueled the year-end inflation. This is reflected in the increase in the index of expenditure groups, including the food commodity group by 1.45%; followed by the processed food, beverages, tobacco, and cigarettes group by 0.22%. Then, the housing, water, electricity, gas, and fuel group increased by 0.13%.

Core inflation in December 2018 was 0.17% compared to the previous month, while inflation for the period January-December was 3.07%. Government-administered component inflation in December was 1.2%, while the annual inflation was 3.36%. Volatile component inflation in December of last year was 1.55%, and annual inflation was 3.39%.