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BJ:Gold Price Triggered Inflation in Jakarta
 
The increasing jewelry price amounting to 0.097 has triggered inflation in Jakarta. The rate of inflation in Jakarta in June 2011 reached 0.43 percent compared to previous month which was only 0.15 percent. Meanwhile, the rate of inflation from January to June 2011 reached 1.33 percent and the yearly inflation rate in Jakarta reached 5.36 percent. It is predicted that this condition would continue to appear during two months because of Ramadhan month and Idul Fitri feast day.

Jakarta Head of the Central Statistics Bureau (BPS), Agus Suherman, said that the rate of inflation in June 2011 in Jakarta is higher than the national inflation rate in June 2011 which is only 0.33 percent. "The inflation is caused by the increasing prices of food as happens to gold that rises from month to month," he stated at Jakarta’s BPS Office, Friday (7/1).

He predicts that it is most likely that the rise happens in July and August as it enters Ramadhan month and Idul Fitri feast day. Therefore, BPS hopes that the Jakarta Regional Inflation Monitoring Team (TPID) strives hard to suppress the inflation.

According to him, the inflation occurring in June 2011 was due to increasing prices of food amounting to 1.08 percent. He noted that there are five other groups got increasing index, such as food materials 0.96 percent, fast foods, beverages, cigarettes and tobacco 0.49 percent and health products 0.46 percent.

Next are education, recreation and sports products increased by 0.21 percent, and housing, water, electricity, gas and fuel increased by 0.16 percent. Only one group has its index decreased. They are transportation, communications and financial services which decreased by 0.01 percent.

"The transport index dropped due to the decline in pertamax fuel price from Rp 9,000 to Rp 8,300 per liter," he explained.

Meanwhile, the commodities contributing critical inflation are gold jewelry at 0.097 percent, rice at 0.054 percent, clove cigarette filter at 0.040 percent, chicken meat at 0.034 percent, eggs at 0.034 percent, red onions at 0.032 percent, tomatoes at 0.026 percent, plate rack at 0.021 percent, air transportation at 0.019 percent, cinemas at 0.014 percent and salted eggs at 0.013 percent.

Agus also stated that in June 2011, from 66 cities which had been studied, there were 65 cities experiencing inflation. The city with the highest inflation was Ambon at 3.76 percent and the city with the lowest inflation was Padang Sidempuan at 0.04 percent. Jakarta was at the 44th position.
Source