The Central Statistics Agency (BPS) announced that monthly inflation in December was 0.62%, resulting in annual inflation reaching 3.13% in 2018. Last year's inflation rate was lower than the 3.61% recorded in 2017, but higher than the 3.02% achieved in 2016. Last year's inflation was the third lowest in the last 19 years, as shown in the graph below.
The increase in non-subsidized fuel prices was the main driver of inflation in 2018. The rise in global crude oil prices, which at one point exceeded US$80/barrel for Brent crude, fueled the increase in non-subsidized fuel prices at public gas stations (SPBU) across the country. The contribution of fuel price increases to last year's inflation was 0.26%.
Other contributors to inflation included a rise in rice prices (0.13% contribution), an increase in filter kretek cigarette prices (0.13% contribution), a rise in broiler chicken prices (0.12% contribution), airfare increases (0.1% contribution), and an increase in house rental rates (0.09% contribution).
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