Institute for Research on Economics and Society – Faculty of Economics and Business – University of Indonesia

MACROECONOMIC ANALYSIS: Inflation August 2017

September 6, 2017

In August 2017, there was deflation of 0,07% (mtm) or inflation of 2,53% (ytd). Deflation in August 2017 was the first deflation after inflation occurred since April 2017. This is in accordance with LPEM's predictions in the previous analysis. Deflation occurred due to pressure resulting from adjustments to the basic electricity tariff and the effects of the Eid period which had ended which led to the normalization of food prices. Since two years ago, inflation occurred one month after Eid, followed by deflation in the second month after Eid. This also happened in 2017.

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