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Release Date	:	July 1, 2021
File Size	:	1.33 MB

Abstract

Post-Eid Al-Fitr, prices for food, clothing, and footwear in Jakarta have decreased after soaring during Ramadan and ahead of Eid last May. The correction in food and clothing prices caused Jakarta to experience deflation for the first time in 2021.

In June 2021, Jakarta was recorded to experience deflation of -0.27 percent. The decline in the price of chicken, red chilies, and cayenne peppers was the main trigger for the deflation. In addition, the deflation was also contributed by the falling prices of several commodities in the categories of clothing and footwear; transport; health; and housing, water, electricity, and household fuels. However, deeper deflation was restrained by the increasing prices in other categories.

Deflation due to price corrections after Eid was expected to have positive impacts on the people in Jakarta. With the deflation, purchasing power increased, and the currency value strengthened to regain people’s welfare.

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