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BI, govt remain cautious over inflationary pressures due to La Niña
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Prime commodity -- A vendor piles up red chilies at his kiosk at Idi Rayeuk Market in East Aceh, Aceh, on Sept. 4. The government and Bank Indonesia are coordinating efforts to tackle weather-related inflationary pressure from volatile food prices.
(Antara/Syifa Yulinnas)
W
hile consumer prices rose only mildly in September, Bank Indonesia (BI) remains vigilant about the possibility of the La Niña weather phenomenon causing inflationary pressure by driving up food prices.
“The coordination between BI and the government will be focused on efforts to secure the supply and distribution of basic necessities, in particular, and to keep the inflation rate within expectations,” BI communication department executive director Tirta Segara said on Tuesday.
He added that the rather low monthly inflation of 0.22 percent in September was owed to a 0.09 percent decrease in volatile food prices, driven by lower prices for eggs, chicken and chilies, among other commodities.
Tirta said September's inflation was mostly driven by higher administrated prices for items such as cigarettes and electricity.
Overall, monthly inflation in administrated prices stood at 0.14 percent in September. Compared against the same period of last year, administrated prices fell by 0.38 percent in September.
Meanwhile, core inflation in September stood at 0.33 percent month-on-month (mom) and 3.21 percent year-on-year (yoy), lower than the overall inflation rate.
"This is in line with our limited domestic demand, maintained inflation expectations and a relatively stable rupiah exchange rate," Tirta explained.
The Central Statistic Agency (BPS) reported year-to-date inflation of 1.9 percent as of September, while consumer prices in the first nine months of year were up 3.07 percent from the same period last year. Tirta said BI considered these figures were reasonably under control and in line with historical trends. (ebf)
