BANDUNG – Even though it is higher than its historic pattern, monthly inflation rate of West Java in February decreases compared to the previous month. It is reflected through the inflation rate of February 2017 which reached 0,36% (mtm) or decreases compared to January 2017 which was amounted to 0,77% (mtm).
The decrease in monthly inflationary pressure occurs as well as the decrease in price of basic need commodities and also the reduced impact on the price hike fixed by the Government in the beginning of 2017, although it was delayed by the effect of electricity tariff for post-paid customers and the policy of cigarette tax adjustment to companies' selling prices.
The realization of monthly inflation and CPI in February 2017 is higher than its historic average (period of 2012-2016) which reached 0,16% and the national monthly inflation which is recorded to reach 0,23%.
The inflation rate of West Java in February 2017 reached 1,13% (ytd). It is higher compared to the historic average (period of 2012-2016) of inflation in February which only reached 0,74% (ytd).
"On the yearly basis, the inflation of West Java has increased. In January it reached 2,94% and it reached 3,49% in February 2017 or below the national inflation on the annual basis which reached 3,83%,” said Yuda Agung, Head of Bank Indonesia Representative for West Java.
Meanwhile, the increasing tariff on cellular phone services which has been going on since September 2016 as an attempt of telecommunication providers to get their investments back, also contributes to the inflation.
Furthermore, based on the tariff adjustment in the beginning of this year, rented house also contributes to the most inflation. The inflation rate increases from 0,32% (mtm) in January 2017 to 0,93% (mtm) in February 2017. The inflation of rented house in February 2017 is recorded to be more higher than the historic average of the last three years which reached 0,29% (mtm). jo