Inflation during The First Quarter of 2019

Central Java’s inflation level during the first quarter of 2019 stood at 1.82% (yoy) recording a decline from the prior quarter (2.82% (yoy)). Also, it is lower than the provious year which noted a 3.39% (yoy) inflation. Meanwhile, quarterly, the province’s 0.26% (qtq) inflation remained lower than the previous quarter which recorded 0.97% (qtq).

On the other side, Central Java’s inflation remained lower than the national inflation and overal Java’s regional inflation which hit 2.48% (yoy) and 2.59% (yoy), respectively. The inflation drop was in line with the decelerating price trend in both java and national scale making Central Java as the area with the lowest inflation level in Java region during the period.

The monthly growth of Consumer Price Index in the province during the period recorded a fall  in February 2019 with tighter intensity than the other provinces in Java region. In fact, the drop supported the historical pattern in which the citizens’ demand will drop gradually following the end of the year before climbing its way back to the top during religious holiday by the end of the second quarter of 2019

Moreover, the drop in inflation was caused by volatile food, transportation, communication and financial services. The progress of quarterly price index for those sectors indicated a further drop. Evenmore, transportation, communication and financial services noted a quarterly deflation during the first quarter of 2019.

 

 

 

 

 

Source            : Central Java Provincial Economic Report, Bank of Indonesia Representative Office in Central Java