Indonesia recorded annual inflation of 2.

68 percent in January in applying a new formula

for calculating its consumer price index (CPI), Statistics Indonesia (BPS) announced on
Monday. The new formula uses 2018 as the base year of the CPI instead of 2012, as well
as a new consumption pattern. January's inflation figure, therefore, cannot be compared
with the December inflation rate of 2.72 percent that was calculated using the old
formula, since it was not "an apple-to-apple comparison", said BPS head Suhariyanto.
“We included prices in the ride-hailing sector, for instance, but excluded items that were
no longer [relevant],” he said at a press conference on Monday in Jakarta. The different
components used in the calculation, however, did not significantly affect this year's
inflation rate compared to previous years, he added. Indonesia’s monthly inflation was
0.32 percent in January 2019. The CPI was calculated at 0.39 percent in January 2020,
with core inflation of 2.88 percent. “The main cause of the inflation in January 2020 was
the increased price of chilies, fish and tobacco, despite the decrease in the price of flight
tickets and fuel,” said Suhariyanto. He added that the government’s decision to lower
the price of fuel and flight tickets had contributed to deflation in January. Of the 90 cities
the BPS surveyed, 79 recorded inflation, while the remaining 11 cities recorded
deflation. Meulaboh, West Aceh, recorded the highest inflation with 1.44 percent, while
Baubau, Southeast Sulawesi, recorded the highest deflation with 1.39 percent. Indonesia
recorded an annual inflation of 2.72 percent in 2019, the lowest level in about two
decades thanks to lower inflationary pressures from government-regulated prices. Bank
Indonesia has targeted inflation of between 2 percent and 4 percent for this year.