JAKARTA: Indonesia' inflation rate fell to 0.16 per cent month-on-month last month, compared to 0.34 per cent the country recorded the previous month, mainly contributed by the cost of transportation, prices of food and beverages, and the higher tax on cigarettes, the Statistics Indonesia (BPS) announced today.
On a yearly basis, the inflation rose to 5.47 per cent year-on-year last month, compared to 5.28 per cent year-on-year in January.
"The inflation in the transportation sector was mostly affected by the increase in air transport fares, while the biggest contributors to month-on-month inflation were rice, cigarettes, shallots, and red chilies," BPS Deputy for Distribution and Service Statistics, Pudji Ismartini told a press conference in Jakarta, according to Xinhua.
Starting in January, the Indonesian government has increased cigarette excise tax by 10 per cent for this year and next year.
Indonesia's Central Bank, Bank Indonesia, announced last month that the inflation pressure would likely reach its peak this month,
with prices in commodities being predicted to be higher than last month, because the Muslim-majority country would enter the Islamic fasting month of Ramadan. – BERNAMA