Inflation resisted crisis in 2008

Inflation resisted crisis in 2008

The global financial crisis did not spark severe price hikes in Denpasar last year as the city's inflation rate continued its tradition of remaining below the national rate, a report from the Bali Statistics Agency reveals.

According to the report, the city's inflation rate last year was 9.62 percent, lower than the national inflation rate of 11.06 percent.

"Historically, Bali never sees soaring inflation in November and December," head of the agency, Ida Komang Wisnu, said in a prior interview.

Many parts of Indonesia saw a rise in inflation at the end of the year due to increased spending during the Christmas and New Year holidays, though Denpasar appeared to be an exception to the rule.

Denpasar's inflation rate continued to resist the fallout from the global financial in December.

The city's inflation rate for December stood at 0.28 percent, lower than most economists' predictions.

The prices of foods used for ingredients rose the most of all commodities in the period, by 1.91 percent, while the secondary needs group of products, which includes clothing, was the second-highest climber with a rate of 1.73 percent.

The food products group, including ready-made meals, cigarettes and tobacco, was the third-largest contributor, with an inflation rate of 1.60 percent.

The housing and energy group saw an inflation rate of 1.19 percent, the health group 0.06 percent and the education and recreation group 0.13 percent.

The transportation, communications and financial services group experienced deflation at a rate of 3.51 percent.

"The commodity that really affected this group was the price of gasoline, which went well down last month," Wisnu said.

The report further showed that the prices of kerosene, drinking water, rice, cars, cigarettes and meat rose in December, while gasoline, baby milk, cell phone tariffs and cooking oil prices declined.

Of the 33 cities surveyed by the National Statistics Agency, Denpasar was ranked 27 in terms of inflation, where regions with high inflation are ranked lower. The city of Tarakan, East Kalimantan, ranked number one for December.

Andra Wisnu , The Jakarta Post , Denpasar | Tue, 01/06/2009 11:11 AM | Bali