Bank Indonesia noted that until the third week of October, the inflation position was in the range of 0.12 percent on a monthly basis (month to month). Due to the recent increase in non-subsidized fuel prices, Bank Indonesia (BI) Governor, Perry Warjiyo said on Friday (19 Oct).
Statistics Indonesia (BPS) announced that the country recorded a 0.18 percent deflation in September and 0.05 percent in August. The latest figure brings year-to-date (ytd) inflation to 1.94 percent, while year-on-year (yoy) inflation stands at 2.88 percent.
“[The fuel price increase] will become the pushing factor for the inflation rate in October, in addition to the price increase of red chili,” Perry said as reported by kompas.com.
He estimated that up to October, ytd inflation would be recorded at around 3 percent and by the end of the year, inflation would be still within the target of 3.5 percent, plus and minus 1 percent. Because, some inflation components such as core inflation, administered prices and low food prices were observed.
Perry said, adding the price of some basic commodities like chicken meat and shallots even showed deflation.
“It is true that this shows that inflation remains low and controlled, so it confirms our previous estimation that at the end of the year, overall inflation for 2018 will be lower than 3.5 percent,” he explained.
BI has set a target of keeping inflation between 2.5 and 4.5 percent this year, as outlined in the 2018 state budget.
Source: thejakartapost.com, ekonomi.kompas.com