Gold prices decline trigger Low Inflation
Gold Investing June 25th, 2010
JAKARTA – The low inflation rate in February 2010 by 0.3 percent compared with January 2010 inflation of 0.84 percent is influenced by the decline in gold prices due to the strengthening of the rupiah against the U.S. dollar.
Head of the Central Bureau of Statistics (BPS) Rusman Heriawan said that the decline in gold prices has pushed inflation indicated by 0.05 percent.
“Rupiah we’re stronger, so the gold price decline was not due to declining real, because the dollar dropped, it’s because we are the stronger rupiah. But because BASED gold price in dollars so a fall in the rupiah,” he said after the announcement of inflation in February 2010, at the BPS office , Jakarta, Monday (1/3/2010).
In addition to the gold price factor, she also stated that the decline in inflation rate due to fresh fish, eggs, potatoes, oranges, cooking oil, and cell phones are also a deflation that could push inflation as deep as 0.01 percent. “Some other commodities also provide a pressure approximately 0.01 per cent respectively,” he said.
In February 2010, there was an inflation of 0.3 percent in the Consumer Price Index (CPI) for 118.36. From 66 cities, 52 cities experienced inflation and 14 cities experienced deflation.
The highest inflation occurred in Tarakan CPI 1.82 percent to 135.68 and the lowest occurred in Jember with CPI 0.04 percent 118.93. Meanwhile, the highest inflation occurred in Maumere CPI 1.3 percent with 128.79 and the lowest occurred Ternate CPI 0.07 percent to 122.13
