Consumer Price Index (CPI) in May 2008 experienced an increase (inflation) of 1.41% (m-t-m). The figure is lower than April 2008 inflation (0.57%). The annual inflation growth (y-o-y) amounted to 10.38%, higher than April 2008 inflation of 8.96%. The calendar year inflation in May 2008 amounted to 5.47% (y-t-d). Please click the attachment for the summary. Source: Statistics Indonesia (BPS) |
Saturday, June 7, 2008
Inflation May 2008
Tuesday, June 3, 2008
Indonesia inflation rises 10.38% in May on fuel price hike
Indonesia's annual inflation accelerated in May to its fastest pace in 20 months after the government raised fuel prices to deal with a ballooning subsidy bill amid high global crude oil prices, raising worry the central bank may hike interest rates for the second time this year.
The consumer price index rose 10.38 percent in May from a year ago and was up .41 percent from April, said Rusman Heriawan, chairman of the Central Bureau of Statistics. The inflation figures were within market expectations. Nine economists polled by Thomson Financial had expected consumer prices to rise between 0.5 percent and 2.24 percent over the month and between 9.4 percent and 11.29 percent year-on-year.
On May 24 the government raised fuel prices by an average 28.7 percent. Heriawan said the effect of the fuel price hike will still be felt in June 'but the magnitude may be smaller.' Heriawan said the fuel price hike triggered increases in transportation costs. As a result, the cost of transportation, communications and financial services in April rose 2.23 percent from the preceding month.
Fresh food prices in April rose 1.72 percent from March while prices of processed food, beverages and tobacco were up 0.86 percent. Heriawan said housing, water, electricity, gas and fuel costs surged 1.58 percent; healthcare costs rose 0.69 percent; and the cost of education, recreation and sports gained 0.37 percent.
The only CPI component that recorded a decline in April was clothing, where prices fell 0.16 percent from March. Analysts have said Bank Indonesia may have to hike its key interest rate, called the BI rate, to 9.0 percent by the year-end from the current 8.25 percent to rein in soaring inflation.
Source: forbes.com
Publication date: 6/3/2008
The consumer price index rose 10.38 percent in May from a year ago and was up .41 percent from April, said Rusman Heriawan, chairman of the Central Bureau of Statistics. The inflation figures were within market expectations. Nine economists polled by Thomson Financial had expected consumer prices to rise between 0.5 percent and 2.24 percent over the month and between 9.4 percent and 11.29 percent year-on-year.
On May 24 the government raised fuel prices by an average 28.7 percent. Heriawan said the effect of the fuel price hike will still be felt in June 'but the magnitude may be smaller.' Heriawan said the fuel price hike triggered increases in transportation costs. As a result, the cost of transportation, communications and financial services in April rose 2.23 percent from the preceding month.
Fresh food prices in April rose 1.72 percent from March while prices of processed food, beverages and tobacco were up 0.86 percent. Heriawan said housing, water, electricity, gas and fuel costs surged 1.58 percent; healthcare costs rose 0.69 percent; and the cost of education, recreation and sports gained 0.37 percent.
The only CPI component that recorded a decline in April was clothing, where prices fell 0.16 percent from March. Analysts have said Bank Indonesia may have to hike its key interest rate, called the BI rate, to 9.0 percent by the year-end from the current 8.25 percent to rein in soaring inflation.
Source: forbes.com
Publication date: 6/3/2008
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