Inflation, or deflation, rate is one of the principal keys to assessing the economic climate. Since 2014, inflation data In Indonesian economics has been fluctuating in all commodity groups. The rate of inflation of all eight sectors finally stabilises in 2018.

In 2014, the average inflation rate is reported the highest at 7.47%. Five commodity groups are reported to experience inflation over 7% inflation, two of them even recorded inflation over 10%: Transportation, Communication, and Financial Services (12.14%) and
Food (10.57%). The average inflation rate that year was 7.5% or more than double the acceptable annual inflation.

 Interestingly, Transportation, Communication, and Financial Services underwent deflation in the two following years, -1.53% in 2015 and -0.72 in 2016. This event is triggered by the decrease of fuel’s price, like Premium and Solar. The trend for all commodities groups is also declining, sharper in some groups like Housing, Water, Electricity, Fuel, and Gas group, Food, and Others.

In 2017, all sectors rate of inflation steadily decreasing around 3-5%, except Food that reported very small inflation at 1.26%. In the following year, all eight commodity groups show an inflation rate under 4%, befitted the ideal inflation rate in Indonesia which is 3%.

Among all commodity groups, Apparel, as well as Education, Travel, and Sports show the minimum volatility during the 5-year trend. These two groups can stay around a 3% inflation rate, without much fluctuation. On the other hand, the groups with high volatility are Food; Transportation, Communication, and Financial Services; also, Housing, Water, Electricity, Fuel, and Gas. (KD)