BPS Records Deflation In September

Jakarta, Oct 1 (Antara) - The head of the Central Bureau of Statistics (BPS) said on Tuesday that a 0.35 percent deflation was recorded in September, making it the first such occurrence since 2001. "A deflation has again been recorded in September, for the first time since 2001," Suryamin, the BPS head, stated. He added that the last deflation in September was recorded in 2000 at 0.06 percent after a 0.68 percent deflation in the year before. "It means that in September prices dropped and have been at the level that we, the buyers, have been expecting. Hopefully it will decline further," Suryamin noted. With the 0.35 percent deflation in September, inflation in the calendar year from January to September 2013 was recorded at 7.57 percent, while year-on-year inflation was reported at 8.4 percent. Meanwhile, core inflation in September was recorded at 0.57 percent and year-on-year inflation at 4.72 percent. Suryamin said that in terms of groups of components, general inflation had contributed a 0.35 percent deflation followed by a 0.75 percent deflation caused by volatile prices. However, core inflation contributed 0.34 percent, while government sanctioned prices contributed 0.06 percent. The BPS chief pointed out that the deflation had occurred because of a drop in the prices of food commodities in several regions as seen in their contribution at 0.76 percent to the deflation. In other groups of spending, transportation, communication and financial services also recorded a deflation in September contributing 0.12 percent. But the group of processed foods, beverages, cigarettes and tobacco, had contributed an inflation of 0.13 percent followed by housing, water, electricity, gas and fuel materials contributing an inflation of 0.13 percent. Meanwhile, clothing contributed an inflation of 0.21 percent, health 0.01 percent, education, recreation and sports 0.05 percent. "Clothing contributes to inflation due to international gold price," Suryamin said. Out of the 66 cities covered by the Consumer Price Index, 53 recorded deflation, while 13 others reported inflation. The highest deflation was recorded in Sorong, Papua, at 4.28 percent while the lowest in Surabaya, East Java, at 0.02 percent. The highest inflation was recorded in Tanjung Pinang, Riau Islands, at 1.7 percent. "The average price of shallot, chili and public transportation fares is down because the post-fasting festivities are over," Suryamin stated.