BANDUNG-As forecasted by West Java BI earlier, in December 2016, inflationary pressures of West Java on a monthly basis to decline to a level of 0.36% (mtm) or annual basis amounted to 2.75% (yoy), lower than the previous month that experienced inflation of 0.55% (mtm) or 3.20% (yoy).
The decline in inflation pressures on a monthly basis is especially due to the reduced effects of food price volatility or volatile food that had jumped significantly in November. Some major food commodities contributing to deflation are quite in line with the ongoing harvest began.
Fundamentally, the ongoing moment of feast and a holiday at the end of an impact to the increasing demand, especially in transportation and foodstuffs. Depreciation also give a bit of pressure through a group of imported goods.
Historically, inflation in December 2016 was lower than the average inflation rate in December 2011-2015 period amounted to 0.85% (mtm) or 5.25% (yoy). Thus, inflation in 2016 was recorded slightly higher than in 2015 amounted to 2.73% (yoy), but still under control and even slightly below the target range of annual inflation target of 4% ± 1% (yoy).
"The biggest share of monthly inflation reached 0.15% provided by the core group or category of goods relatively volatile," said Yayan Istiadi, PR West Java BI.
Furthermore, the second-largest share of the monthly inflation was given by the administered prices of 0.13%. The lowest share is given by volatile foods or food ingredients ferment of 0.08%.
On a monthly basis, volatile foods (VF) experienced low inflation which amounted to 0.39% (mtm) after November inflation of 2.09% (mtm).
In annual terms, inflation also fell from the VF group of 10.95% (yoy) in November to 7.58% (yoy) in December 2016. jo