TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
BPS predicts moderate inflation during Ramadhan
Change Size
People purchase rice during a market intervention activity in Bulak Banteng subdistrict, Surabaya, East Java, in 2015. The State Logistics Agency (Bulog) organized the event. (Antara/Bima)
T
he Central Statistics Agency (BPS) has predicted inflation will decrease on the back of the fasting month of Ramadhan, set to start in early June.
"The government should prepare supplies of basic commodities in order to maintain commodity prices. Inflation in June is expected to be moderate," BPS deputy head of distribution and statistics Sasmito Hadi Wibowo said in Jakarta on Monday, adding that as long as there was no increase in fuel prices, commodity prices would remain at a safe level.
Sasmito also predicted low inflation, dropping below 0.5 percent this month, partly as a result of the decrease in fuel prices since April, resulting in 0.45 percent deflation.
"Fuel prices will probably be stable this month, resulting in relatively light inflation, ranging below 0.5 percent," he said.
The BPS reported recently that Indonesia had recorded deflation of 0.45 percent last month as a result of the government's decision to cut fuel prices and public transportation fares at the beginning of the month.
The slight deflation has brought the year-to-date inflation rate to 0.16 percent and the annual rate to 3.36 percent year-on-year.
Sasmita was optimistic that with the low inflation, Indonesia could target inflation of 3 to 5 percent by the end of 2016.
"An inflation target of 4 percent is still achievable. The key is to maintain the supply of staple foods and steady fuel prices," he added.
Meanwhile, BPS head Suryamin said the government's decision to lower fuel prices by Rp 500 (3 US cents) per liter — 6.61 percent — since the beginning of April had driven deflation.
The agency also recorded lower prices of staple foods thanks to steady supplies last month. The price of red chilies plunged by 25.41 percent, followed by the price of potatoes dropping by 8.32 percent. Meanwhile, the price of chicken slid by 3.24, followed by rice, which went down by 1.47 percent, and fish, down by 1.45 percent.
"During the same period, we also recorded an electricity rate reduction of 1.62 percent and land transportation fares down by 0.74 percent following the cut in fuel prices," he said, adding that airplane fares also slid by 2.67 percent. (dmr)
