At the end of 2010, the ready-made food, beverage, cigarette and tobacco groups contributed the most to the formation of inflation in the city of Bandar Lampung. Meanwhile, the food ingredients group was ranked second in December 2010. The increase in prices of various commodities in these two groups and some in other groups resulted in inflation in Bandar Lampung City of 0.77 percent.
A total of six groups in December experienced an increase in their index. The groups that contributed most to inflation were processed food, drinks, cigarettes and tobacco, mainly due to the increase in prices of several commodities such as martabak, sweet bread and kretek cigarettes. Meanwhile, in the food ingredients group, the most dominant commodities are rice, red chilies and purebred chicken eggs. Inflation in Bandar Lampung City was ranked 42nd out of 66 cities where price developments were observed. A total of 65 cities experienced inflation and only one city experienced deflation. The highest inflation occurred in Lhokseumawe at 2.97 percent, while the only city that experienced deflation was Sorong at 1.30 percent.
Based on the calculation of the consumer price index (CPI), inflation occurred due to an increase in the index in six expenditure groups, namely foodstuffs 1.16 percent, ready-made food, drinks, cigarettes and tobacco 1.57 percent, housing 0.31 percent, clothing 0.99 percent , education, recreation and sports 0.19 percent and transport and communications 0.13 percent. The health services group experienced a decline in the index of 0.44 percent.
Several commodities that dominantly contribute to inflation include rice, red chilies, martabak, sweet bread, clove cigarettes, gold jewelry, noodles, pure chicken eggs, cayenne peppers and oranges. Based on the calendar year (point to point) and year on year (yoy), inflation in Bandar Lampung City is 9.95 percent.