Garlic Led to Deflation of 0.1 Percent in April


Garlic price, which remained stable, became one of the causes of deflation in April 2013. Head of Statistics Indonesia (BPS) Suryamin stated that garlic became one of the causes of 0.1 percent deflation. “The main cause of deflation was garlic price, which decreased by 25.6 percent, compare to last month,” he explained.

He added, garlic contributed to deflation of 0.18 percent and it occurred in 62 Consumers Price Index (CPI) cities. In addition, another cause of deflation was gold jewelry that contributed 0.1 percent, rice of 0.06 percent, tomato and cayenne pepper respectively 0.03 percent, chicken and fish of 0.02 percent. “The average commodity prices decreased as well due to sufficient supply since it entered harvest period and good weather,” he explained.

Meanwhile, a commodity causing inflation was red onion, which contributed 0.07 percent because the price did not decrease in 57 IHK cities. “Actually, red onion price started decreasing, but it wasn’t significant one. On average, prices in April were not as high as March,” he stated. Other causes of inflation were apple, which contributed 0.04 percent, orange and home rental rates respectively 0.03 percent, and domestic servant’s wage and air transportation of 0.02 percent.

Due to deflation in April, inflation rate for calendar year of January-April 2013 reached 2.32 percent and for year on year (yoy) of 5.57 percent. Meanwhile, the core inflation in April was 0.14 percent and 4.12 percent for year on year.