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In July 2020, Central Java experienced deflation of 0.09 percent

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Release Date	:	August 5, 2020
File Size	:	1.99 MB

Abstract

In July 2020, Central Java experienced deflation of 0.09 percent with a Consumer Price Index (CPI) of 104.65. Deflation in July 2020 occurred in all 6 CPI cities in Central Java. Purwokerto City recorded the largest deflation of 0.20 percent with a CPI of 104.21 followed by Cilacap City which fell by 0.17 percent with a CPI of 103.49; Semarang City by 0.10 percent with a CPI of 105.03; Kudus City by 0.09 percent with a CPI of 103.83; Tegal City by 0.05 percent with a CPI of 105.11 and the smallest deflation in Surakarta City by 0.03 percent with a CPI of 103.79. Deflation occurred due to a decrease in prices indicated by a decrease in the price index of several expenditure groups, namely the food, beverage and tobacco group which fell by 0.66 percent followed by the transportation group by 0.26 percent; information, communication and financial services group by 0.23 percent; and the education group by 0.14 percent. On the other hand, several expenditure groups recorded an increase in prices, namely the personal care and other services group rose by 1.08 percent; followed by the health group by 0.33 percent; the food and beverage/restaurant provision group by 0.30 percent; the recreation, sports and culture group by 0.26 percent; the clothing and footwear group, as well as the household equipment, tools and routine maintenance group each increased by 0.14 percent. Meanwhile, the housing, water, electricity, gas and other fuels group did not experience any changes in the index (relatively stable). The main causes of deflation in Central Java in July 2020 included a decrease in the price of shallots, air transportation, broiler chicken, garlic and granulated sugar. Meanwhile, the main factors that restrained deflation in Central Java included the increase in the price of broiler chicken eggs, gold jewelry, red chilies, bottled water and filtered kretek cigarettes. The calendar year inflation rate up to July 2020 was 0.73 percent and the year-on-year inflation rate (compared to July 2019) was 2.08 percent.

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