BPS deputy head of distribution and statistics Sasmita Hadi Wibowo said the government must maintain an adequate supply of staple foods and control transportation fares to maintain month-on-month inflation at below at 1 percent.

"We hope inflation will stay below 1 percent. If it can be managed below 0.5 percent, that would be great," Sasmita told reporters on Wednesday in Jakarta, adding that the peak of price increases would be around the July 6 and 7 Idul Fitri holiday.

In its latest report, Indonesia recorded a benign inflation rate of 0.24 percent in May. The year-to-date inflation rate was 0.4 percent and the annual rate 3.33 percent. The government targets 3 to 5 percent inflation by the end of 2016.

All index prices increased, namely food and beverages, cigarettes and tobacco at 0.58 percent; attire at 0.44 percent; staple foods at 0.30 percent; health at 0.27 percent; transportation, communication and financial services 0.21 percent; education, recreation and sport 0.03 percent; and housing, water, electricity, gas and fuel at 0.02 percent. (ags)

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