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Price Index Drops, Jakarta Returns To Deflation in August 2022

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Release Date	:	September 1, 2022
File Size	:	3.58 MB

Abstract

After five consecutive months of inflation, during August 2022 inflation subsided and even deflation occurred. Amid the rising prices of several strategic commodities, the price index for the food, beverage and tobacco category was observed to decline and became the main trigger of deflation this month.

In August 2022, Jakarta recorded a deflation of 0.11 percent. This was the second deflation in 2022. The largest contributor to this deflation were broiler chicken, shallots, cooking oil, red chilies, oranges, and cayenne pepper. The prices of these commodities fell in line with the increasing supply of goods in the market.

On the other hand, the price of several other goods/services commodities increased so that they could contain the deflation rate. The goods/services commodities were house contracts, house rent, electricity tariffs, household fuels, broiler eggs, school fees, and gasoline. Although the price of these commodities increased, in general the consumer price index depreciated, resulting in deflation. This was due to the relatively higher share of deflation in the food, beverage and tobacco categories.

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