Still Can Deflation in May

Central Bureau of Statistics (BPS) estimates that deflation is still going to happen this month of May. However, deflasinya still lower than last April because of rising prices pertamax and jewelry. Prices of basic needs are still relatively decreased, except rice and sugar. can be concluded there is huge potential for deflation, even though its potential may be smaller than last month.

Price pertamax against inflation is still quite small. Especially gold jewelry price increase also has a small weight. In Budget 2011, the inflation target of 5.3% of control dilevel. In the main points of policy Fiscal 2012, the government said inflation in 2011 could be higher at 6.0% position. Finance Minister says the change has been mostly due to projections of global factors "that later one in 2011 inflation reached 6%, it is because domestic factors, but also globally.

Last April to 0.32% deflation. By April the rate of inflation deflation calendar year (January to April) only reached 0.39%. whereas the year of year inflation reached 6.16%. Inflation in April reached the core component of 0.25%. Calendar year core inflation rate reached 1.31%. Currently, energy prices are still a scourge of inflation. If the price premium is increased to Rp 1,000, will provide an additional inflation of 0.5 to 0.6%. If the premium is removed, the impact on inflation will be greater again to 1.6%. This is because all consumers would switch to pertamax is pegged to the market price.

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