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

MACROECONOMIC ANALYSIS of September 2018 Inflation

October 3th

 

In September 2018, deflation was recorded at 0,18% (mtm) or inflation at 1,94% (ytd). Deflation in September 2018 was higher than deflation in August 2018 of 0,05% (mtm). Deflation in September 2018 was different from inflation that occurred in September 2017 of 0,13% (mtm). This deflation is not in accordance with LPEM's prediction from the previous month that it was predicted that there would be low inflation in September 2018, driven by the effect of education spending in September 2018. Even though education spending increased in September 2018, the magnitude of deflation in food prices which was beyond expectations prompted the occurrence general deflation.

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