In March 2010, several commodities with high consumption value, especially those included in the food group such as rice and red chilies experienced a significant price decrease. The price decrease of these two commodities, which was also supported by the decrease in the price of several other commodities, caused deflation in Bandar Lampung City by 0.87 percent. Several commodities that experienced price increases in the previous month and contributed significantly to last month's inflation, such as rice, mackerel and fresh anchovies, experienced a price decrease this month.
The group that contributed most to deflation was the food group due to the decrease in the price of several commodities such as rice, red chilies, mackerel, tempeh and spinach. The group that also contributed to deflation was the clothing group, while the other five groups, namely processed food, beverages, cigarettes and tobacco, housing group, health services group, education, recreation and sports group and transportation and communication group experienced price increases. Deflation in Bandar Lampung City ranked 65th out of 66 cities whose price developments were observed. A total of 19 cities experienced inflation and 47 cities experienced deflation. The highest inflation occurred in Singkawang at 1.70 percent, while the largest deflation occurred in Sibolga at 0.96 percent.
Based on the calculation of the consumer price index (CPI), deflation occurred due to a decrease in the index in two expenditure groups, namely food 3.80 percent and the clothing group 0.36 percent. Meanwhile, five groups experienced an increase in the index, namely processed food, beverages, cigarettes and tobacco 0.49 percent, housing 0.08 percent, health services 0.75 percent, education, recreation and sports 0.25 percent and the transportation and communication group 0.21 percent.
Several commodities that predominantly contributed to deflation include rice, red chilies, mackerel, tempeh, spinach, fresh anchovies, bean sprouts, cucumbers, Muslim clothing and bricks. Based on the calendar year (point to point) inflation in Bandar Lampung City was 0.15 percent, and year-on-year inflation was 3.39 percent.
