The rupiah exchange rate against the US dollar closed stronger on Friday (2/8) amid declining domestic inflation in July 2024. At the end of trading on Friday, the rupiah strengthened by 37 points or 0.23% to 16,200 per US dollar from the previous 16,237 per US dollar.
“In July 2024, there was a monthly deflation of -0.18%. This continues the deflation trend that occurred in the previous two months, namely -0.08% in June 2024 and -0.03% in May 2024,” said Director of PT Laba Forexindo Berjangka, Ibrahim Assuaibi, in Jakarta, Friday.
The Central Statistics Agency (BPS) stated that the deflationary conditions or decline in prices of goods that occurred for three consecutive months cannot be concluded as a decline in people’s purchasing power in the middle of this year.
Ibrahim said deflation in July 2024 occurred due to falling prices of food commodities, from shallots to broiler chicken, due to sufficient supply in the market. According to the law of supply and demand, when supply is abundant and demand remains constant, prices will fall.
The main commodities contributing to deflation include shallots (-0.11%), red chilies (-0.09%), tomatoes (-0.07%), and broiler chicken (-0.04%). At the same time, inflation occurred in the education group by 0.69% with a contribution of 0.04% to general inflation.
According to its components, core inflation in July 2024 was recorded at 0.18% (month-to-month) with a contribution of 0.12%. The government-regulated component experienced inflation of 0.11% with a contribution of 0.02%. The volatile food component experienced deflation of 1.92% with a contribution of 0.32%.
Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (Jisdor) strengthened to Rp16,234 per US dollar on Friday from Rp16,243 per US dollar previously. (Ant/Z-2)
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