The city of Palembang in August 2016 experienced a deflation of (-0.26 percent) while the Lubuk Linggau City experienced a deflation of (-0.38 percent)

* The cumulative inflation rate for 2016 is 2.24 percent. While the inflation rate "year on year" (August 2016 to August 2015) is 3.90 percent. The city of Palembang in August 2016 based on expenditure groups, showed that 2 (two) groups experienced a decrease in the price index, namely the foodstuffs group at (-2.24 percent); the transportation, communication & financial services group amounted to (-0.76 percent). Whereas the 5 (five) expenditure groups experienced an increase in the price index that held back the amount of deflation this month, namely the processed food, beverages, cigarettes & tobacco group by 1.67 percent; health group by 0.68 percent; clothing group by 0.49 percent; housing, water, electricity, gas & fuel group by 0,30 percent; and education, recreation and sports groups by 0.02 percent.

* Commodities that have decreased in prices which have caused deflation in Palembang City include: chicken meat, intercity transportation, air transportation, shallots and wet shrimp. While commodities experiencing price increases include: red chili, electricity tariffs, filter clove cigarettes, and motorbikes.