August 2017: Deflation of 0.07 Percent

The Central Statistics Agency (BPS) released data showing that in August 2017, deflation reached 0.07 percent, with the consumer price index (CPI) at 129.91. This is the second deflation this year. Of the 82 cities surveyed, 47 experienced deflation and 35 experienced inflation. The highest deflation occurred in Ambon, at 2.08 percent. The highest inflation occurred in Lhokseumawe, at 1.09 percent.

This deflation resulted from a price decrease in several expenditure groups, namely, the food group (down 0.67 percent) and the transportation, communication, and financial services group (down 0.6 percent). Of the 11 food sub-groups, 4 experienced deflation and 7 experienced inflation. The sub-group contributing the most to deflation was spices, at 4.77 percent.

The calendar year inflation rate (January-August) 2017 reached 2.53 percent, and the year-on-year (YoY) inflation rate (August 2017 compared to August 2016) was 3.82 percent. Meanwhile, the core inflation rate in August 2017 was 0.28 percent. The calendar year core inflation was 2.15 percent, and the year-on-year (YoY) core inflation was 2.98 percent.