Airline Tickets, the Biggest Contributor to Jakarta's Deflation

Jakarta recorded a 0.1% deflation in August 2020. This deflation was caused by a decrease in prices, particularly in the air transportation sector.

The Jakarta Provincial Statistics Agency (BPS DKI Jakarta) stated that the average daily flight frequency dropped drastically by approximately 75% compared to normal conditions. This resulted in a 90% decrease in the number of passengers. Monthly, airfare prices fell by 11.2%.

In addition to airfare, a price decrease also occurred in shallots, down 8.6% compared to July. This was due to a large number of farmers harvesting, resulting in an abundant supply of shallots in the market.

Furthermore, the price of broiler chicken decreased by 5.5% (month-on-month). Similar to shallots, the decrease in broiler chicken prices was due to an increase in live chicken stock because of abundant production.