Deflation: Sign of Economy Recovery?

Investors wait patiently for the sentiment positive at Indonesian economics, one of it deflation on last month. After in the middle year on year's inflation problem that is still high, therefore this deflation news take in new expectation. Even many investors believe that sees from other side, the effect of eid festival factor that make food price experiences deflation. 

Really food stuff kick in greatest deflation on last month. This not untrammeled from contribution of eid festival. As more as it really domino effect of its increase stock food makes another food stock price most hoist go down. 

Moreover deflation it very slim, so few its contribution for year on year's inflation that is still high. Just if no eid festival, definitely will happen inflation. This is because rupiah position that continually went down and price of everything on the rise. 

This particularly aught goods import component in it, definitely will adjust by rupiah position. On last month actually rupiah fall as almost 5 percents, and ought to enough to pish high inflation. But seemingly economic still saved by assorts at eid festival. 

This means economy still to be helped by stimulus, are not by economics performance that actually. Of thruster component number deflation really is not economic performance, this appears from logistics problem that not over yet. Government is still fighting on little thing without has once fixed system logistics as a whole. 

This will make logistics problem wills be forwards inflation in future. If government performance unchanged in short term, therefore in the near future logistics and inflation problem is still will destroy Indonesia economics. Maybe expectation inflation 1-2 percents will never accomplished, best of all excitement may just can press under 5 percents. 


Herein the importance of better system logistics can press inflation number under 2 percents. Its problem if numeral inflation stills between 4-5 percents, therefore economic growth won't feel its benefit. Depleted economic growth by high inflation.
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