Bank Indonesia (BI) predicts deflation in April 2016. This is in line with the decline in the price of fuel oil (BBM) and public transport fares some time ago.
Although the magnitude of decline in fuel prices are not too many, the change turned out to be quite an impact deflation this month.
"Kan fuel dropped notably, the same freight," said Executive Director of the Economic and Monetary Policy Bank Indonesia (BI) Juda Agung in his office, Central Jakarta, Tuesday (26/04/2016)
Deflation is solely due to lower fuel prices and public transport fares. Meanwhile, people's purchasing power continues to rise.
"We see positive consumer survey. The consumer confidence index continued to rise," said Judah.
Deflation due to falling commodities had also occurred in February. Until finally followed in subsequent months such as March and April.
The magnitude of deflation in March also had little impact because a relatively small percentage. In April this back then deflation occurs due to lower fuel prices and transport fares early last month.
Source: detiknews
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