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.
Inflation rate in January is expected at 0.67 percent
Change Size
Bank Indonesia Governor Agus Martowardojo gives a statement to journalists on the sidelines of an event in Surabaya in October last year. (JP/Anton Hermansyah)
Bank Indonesia estimates that the inflation rate in January will reach 0.67 percent, compared to 0.42 percent in December.
The rising inflation rate was sparked by increases in administered prices such as annual automotive registration, driver’s license renewals and electricity tariffs as well as the skyrocketing prices of certain commodities like birds-eye red chilies.
Therefore, the government needs to guarantee that the commodities are available in the market to prevent volatility in commodity prices, especially in light of recent bad weather, said BI Governor Agus Martowardojo on Friday.
“Volatile food prices should be controlled,” said Agus, adding that this year’s inflation rate is estimated to reach 3.19 percent year-on-year (yoy) from 3.02 percent last year.
“A 3.19 yoy inflation rate is OK. But we have to anticipate any possible increases in the inflation rate,” said the central bank chief as reported by kontan.com.
He added that the administered prices increase would be the main contributors to this year’s inflation as the government plans to cut the subsidy for electricity and fuels. (bbn)
