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BI vows to keep inflation under control after fast rise in April
Bank Indonesia has vowed to keep inflation within its target range, even as prices continue to rise at a faster pace than usual.
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Employees walk through the lobby of Bank Indonesia (BI), located on Jl. Thamrin in Central Jakarta, on Feb. 26, 2020. (JP/Dhoni Setiawan)
B
ank Indonesia (BI) has vowed to keep inflation within its target range of 2 to 4 percent after the consumer price index (CPI) neared the upper limit of this range in April.
The CPI was up 3.47 percent year-on-year (yoy) in April, Statistics Indonesia (BPS) reported on Monday, the figure marking a 33-month high and rapid rise from 2.64 percent in March.
“BI will remain consistent in maintaining price stability, and [will] strengthen policy coordination with the government at both the central and the regional levels to keep inflation within the3 percent target range, plus-minus 1 percentage point,” BI spokesperson Erwin Haryono said in a statement on Monday.
Read also: Inflation jumps to nearly 3-year high, GDP growth steadies
The central bank has frequently stated during its monthly announcements that its benchmark rate would be adjusted if inflation grew significantly, especially on the demand side.
BI said April’s inflation rise was driven mainly by annual increases of 5.48 percent in food prices, which were relatively volatile, as well as a 4.83 percent yoy hike in government-administered prices. Those figures were up from respectively 3.25 percent and 3.06 percent in March.
BI noted that inflation increased partly due to the changes made to government policies on the price ceiling for cooking oil, as well as increased demand for staple foods during Ramadan.
