RI'S 2009 INFLATION HITS 10-YEAR LOW

Jakarta, Jan 4 (ANTARA) - Indonesia's inflation fell to a ten-year low of 2.78 percent in 2009, the Central Statistics Board (BPS) said on Monday.

The 2009 inflation was chiefly fueled by a 7.81 percent rise in the prices of processed foods, beverages, cigarettes and tobacco, according to BPS data.

The group of housing, clean water, electrical power, gas and fuel prices recorded a price increase of 1.83 percent and that of food materials 2.78 percent.

The group of garments saw a price rise of 6 percent, and that of healthcare, education, recreation and sports 3.89 percent. However, the group of transportation, communication and financial services recorded a deflation of 3.67 percent last year.

Finance Minister Sri Mulyani Indrawati said last year's low inflation was one of the achievements in which the inflation was lower than the projected economic growth rate of 4.3-4.4 percent for 2009.

"This is the lowest inflation in 10 years or even lower than we have projected at 3 percent for 2009. We once recorded the lowest inflation when the economy contracted 13 percent. But this time the economy is growing and the inflation is low. This is what we call premium stability in our economy," she said.

BPS said the monthly inflation rate in December 2009 was 0.33 percent.