Government-Administered Core Inflation Reaches 8 Percent

The overall inflation rate for the 2017 calendar year (January-November) reached 2.87 percent compared to the same period the previous year. Meanwhile, the year-on-year (YoY) inflation rate (November 2017 compared to November of the previous year) was 3.3 percent. Core inflation for the calendar year reached 2.82 percent, with a year-on-year rate of 3.05 percent.

Core inflation for government-regulated components in the 2017 calendar year reached 7.72 percent, with a year-on-year rate of 8.76 percent. Conversely, the volatile component recorded a deflation of 1.71 percent for the calendar year and a deflation of 1.24 percent year-on-year.

Three electricity tariff increases between January and May 2017 fueled core inflation for the government-regulated component. As is known, the government implemented a policy to reduce energy subsidies by raising electricity tariffs for 900 VA household electricity customers deemed capable of affording higher rates. Meanwhile, the government's measures to regulate the prices of several commodities helped contain core inflation for the volatile component, even resulting in deflation.