In July 2018, inflation was recorded at 0,28% (mtm) or 2,18% (ytd). Inflation this month is lower than June 2018, in accordance with LPEM FEB UI predictions in previous analysis. Compared to July 2017, where inflation was recorded at 0,22% (mtm), inflation in July 2018 was higher. Judging from the expenditure groups, inflation in July 2018 was caused by inflation in all expenditure groups except the transport, communication and financial services groups. The highest inflation was recorded in the foodstuffs group at 0,86% (mtm) followed by the education, recreation and sports group at 0,83% (mtm). Inflation in the foodstuffs group was caused primarily by increases in the prices of purebred chicken eggs and purebred chicken meat. Inflation in the Education, recreation and sports group was caused by an increase in education spending in July 2018, the start of the study period, as explained in the previous analysis. The transportation, communications and financial services group experienced deflation due to the normalization of air and inter-city transportation rates after the Eid period was over.

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