Friday, June 03, 2005

May's Inflation is Even Lower

BPS Press Release says:
"May 2003, was marked with 0.21 per cent of inflation. Based on the Consumer Price Index (CPI) calculation in 43 cities, inflation was experienced in 30 cities, while deflation happened in 13 cities. The highest inflation was in Palu (2.31 per cent), whilst the lowest inflation was in Palangkaraya (0.01 per cent). Meanwhile, the biggest deflation was experienced in Padang Sidempuan (-1.09 per cent) and the smallest inflation happened in Bandung and Purwokerto (-0.04 per cent). The inflation was contributed by the increase in the prices of some goods and services groups as follows: prepared food, beverages, and tobacco products (0.01 per cent), housing (0.76 per cent), clothing (0.35 per cent), health (0.81 per cent), education, recreation and sports remained stable (0.00 per cent) and transportation & communication (0.03 per cent). Meanwile, unprepared food experienced a decrease as high as minus 0.28 per cent".
So, what do you say about the "terrifying impact of BBM price hike on inflation rate" now?

Meanwhile, some economists claim that BPS growth report is misleading. Since "it does not take unemployment into account" and "the fact is, consumption has been decreasing; why would then we have high growth?". Since when, we put un-employment into growth accounting? Since when, GDP is just consumption?

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