August Deflation Touches 0.21%


Indonesia recorded the first deflation since February 2022. The Central Statistics Agency (BPS) reported a 0.21% deflation in August 2022 compared to the previous month (month-to-month/mtm). This figure is the deepest since September 2019.

This was stated by the Head of BPS Margo Yuwono in a press conference today, Thursday (1/9/2022). Meanwhile, on an annual and year-to-date basis, BPS recorded inflation.

“Inflation for the calendar year is 3.63%, while the annual inflation from 2021 to 2022 is 4.69%,” he said.

Margo said, based on BPS monitoring in 90 cities in Indonesia, in August 2022 there was a 0.21% deflation. There was a decline in the consumer price index from 111.8 in July to 111.57 in August.

“If you look at the main contributors to deflation in August 2022, red onions, red chilies, cayenne pepper, cooking oil, and chicken meat,” said Margo.

“So out of 90 cities that were observed price developments, 79 cities experienced deflation,” he said.

“For horticultural products, it is entering the harvest period. Shallots, chilies, and several production centers have started to harvest. This will affect domestic inflation,” explained Margo Yuwono, Head of BPS, in a press conference at his office, Thursday (1/9/2022). )

Good news comes from Sumatra. All of the cities monitored on the island were experiencing deflation.

“If we look closely, Sumatra is experiencing deflation. In Java, there is deflation and there is inflation. The deepest deflation in Sumenep is 1.13%,” said Margo.

Previously, the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan rebuked regional heads in Sumatra. Luhut assessed that inflation in Sumatra was too high.

“If there is a regional government from Sumatra, where you live the most inflation occurs. Jambi, Bungo, Kotabaru, Baubau, Bulungan, Padang and so on,” said Luhut at the Regional Inflation Control Coordination Meeting, Tuesday (30/8/2022).

From the data disclosed by Luhut, Jambi experienced the highest inflation of 6.96%. As a result, Jambi occupies the first position with the highest inflation in Sumatra.