Monday, April 11, 2011

Whether Deflation


At the end of the month of April 2011 there is still potential for deflation as happened in March 2011. That is possible because the prices of goods and services tend to decline since the first week of April 2011. "April is still there is potential deflation because the first week is still continuing decline in prices. There is one comfort that occurred in March and April.

Leisure on the price of goods with two conditions. First, the decline in rice prices would still create the price of grain at farm level is still above the Government Purchase Price (HPP). This means that low inflation as prices of rice nationwide fell but prices received by farmers are still on top of HPP.

Second, in March and April 2011 ongoing strengthening of the rupiah. Concerns that the strengthening of the rupiah will push down exports due to the competitiveness of Indonesian exports was not terjadi.Menunjukkan in February to April now remain strong. "This means that exports were down fears did not materialize. Third, although the impact is not too big but the strengthening of the rupiah also give effect to the imported deflation".

Earlier, in March 2011 deflation of minus 0.32 percent, so that inflation of the calendar year from January to March 2011 recorded 0.70 percent. Deflation occurs because of the decline in commodity prices related to food.

Deflation occurs due to a decrease in volatile food or food prices, among others, on the commodity red chilli, rice, cayenne pepper and red onion.

No comments:

Post a Comment