Inflation to slow to below 4 percent: BI
Aditya Suharmoko, The Jakarta Post, Jakarta | Mon, 06/29/2009 4:52 PM
Inflation in June is predicted to slow to below 4 percent from a year earlier, Bank Indonesia (BI) deputy governor Hartadi A. Sarwono said Monday.
Hartadi said the inflation rate could slow to about 3.8 percent in June compared to inflation in June 2008, which was high due to the increase in subsidized fuel prices.
Month-to-month inflation may reach 0.15 percent, he added.
Inflation in May reached 6.04 percent according to the Central Statistics Agency (BPS).
Slower inflation may prompt BI to further cut its benchmark interest rate. BI is scheduled to hold its collegial meeting on Friday.
"We will examine [all factors] thoroughly [to determine the BI rate], not only June's inflation rate. It should be forward-looking, [taking into account] the pressure of commodity prices," Hartadi said.
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