Inflation during The Fourth Quarter of 2018

In the fourth quarter of 2018, Central Java’s annual inflation of 2,82% (yoy) was higher than 2,79% (yoy) inflation during the third quarter of 2018. Nevertheless, the overall achievement in 2018 was lower than 3,71% (yoy) inflation in 2017.


Based on the group’s disaggregation, the decline in 2018’s annual inflation was mainly due to reduce in inflation, such as inflation in Housing, Water, Electricity, Gas and Fuel, Transportation, and Communication and Financial Services groups. On the other hand, compared to the previous period, the realization of quarter IV 2018 inflation increased relatively due to the Transportation, Communication and Financial Services group’s price pressures which were driven by the policy on the cost of refined fuel oil. Increasing demand for goods and services by the community also increased during holidays by the end of 2018.


In the first quarter of 2019, the level of inflation is expected to decrease along with the increasing supply in food and horticulture production and normalization of public consumption after the holiday period at the end of the fourth quarter of 2018. The inflation realization is expected to stabilize below the national’s inflation target standing at 3.5 ± 1%