After peaking at around 40% in December 2005, largely as a result of the Dutch disease impact of sudden aid flows into the province, inflation declined steadily and was 8.5% in June 2007, close to the national level in Indonesia of 5.7%. Persistent inflation means that Aceh's consumer price index (CPI) remains the highest in Indonesia. As a result, Aceh's cost competitiveness has declined as reflected in both inflation and wage data. Although inflation has slowed down, CPI has registered steady increases since the tsunami. Using 2002 as a base, Aceh's CPI increased to 185.6 (June 2007) while the national