Inflation during The Third Quarter of 2018

Central Java’s inflation in the third quarter of 2018 was recorded at 2.79% (yoy)
which indicated an increase compared to the previous quarter on 2.72% (yoy).
Meanwhile, on a quarterly basis, Central Java experienced a deflation of 0.12%
(qtq), a reverse compared to the second quarter of 2018 which recorded inflation of
0.69% (qtq).

Central Java's annual inflation rate in the quarter under review was lower than the
nation’s inflation which was recorded at 2.88% (yoy), and was lower than the Java
Region inflation at 2.98% (yoy). Compared to other provinces in the Java Region,
Central Java Province became the third lowest inflation province after East Java and
the Special Region of Yogyakarta which was recorded at 2.76% (yoy) and 2.77%
(yoy) respectively in the third quarter of 2018. Since 2017, Central Java’s annual
inflation in the third quarter period consistently recorded below the annual inflation
realization in Java Region. Furthermore, the development of the Central Java’s
Consumer Price Index (CPI) in July-September 2018 recorded a deflation that took
place earlier than other provinces in Java Region.

Although, in general, Central Java recorded a monthly deflation trend, but if it is
reviewed based on annual comparison (year-on-year), in the third quarter of 2018,
most of the inflation in Central Java actually recorded an increase in annual inflation
compared to the previous quarter. This indicates that the decline of goods and
services’ prices in the third quarter of 2018 was slower or not as deep as the price
decline in the same period in 2018.