BI Governor Agus Martowardojo said on Friday that a recent survey by the central bank had revealed that pressure from prices of horticultural products, such as red chili, had eased, although the price of broiler chicken still required a close watch.

"We are still optimistic that our inflation target of 4 percent plus-minus 1 percent is within our reach," the central bank governor told reporters. 

The consumer price index fell by 0.45 percent in April, mainly due to lower staple food prices, while yoy inflation stood at 3.6 percent, according to Central Statistics Agency (BPS) data. 

The government is preparing measures to maintain prices and keep the inflation rate in check as Ramadan approaches. Traditionally, prices increase during Ramadan and ease back after Idul Fitri festivities. 

The central bank was in talks with other authorities, such as the Trade Ministry, the Agriculture Ministry, the Office of the Coordinating Economic Minister and the State Logistics Agency (Bulog), to watch the inflation trend at the national and regional level, Agus added. 

Close supervision was required given the country's vast territory that could cause commodity prices to rise and eventually trigger high inflation if they were not carefully watched. 

"Our talks are focused on five primary commodities, namely rice, beef, onions, red chili and chicken," Agus said. 

Indonesian inflation came in 3.35 percent last year, within BI's target of between 3 and 5 percent. (dan)

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