“The impact of the [weakening] rupiah exchange rate against the US dollar is also insignificant. It proves that the analysis that the rupiah weakening will boost inflation is wrong,” Perry said in Jakarta on Monday after attending a meeting at the Finance Ministry in Jakarta.

The Central Statistics Agency (BPS) recorded 0.36 percent inflation in May 2017, a month before Idul Fitri that year.  

Meanwhile, during Ramadhan in June 2016, inflation was recorded at 0.66 percent, while inflation in July that year was at 0.69 percent.  

BPS head Suhariyanto said inflation in May had been controlled thanks to stable rice prices.

Finance Minister Sri Mulyani Indrawati said in the past, inflation was usually high during Ramadhan because of increases in staple food prices.

“It indicates that [now] we are now maintaining prices so as to not affect people’s purchasing power,” Sri Mulyani said, adding that because of close coordination among stakeholders, inflation had been controlled.

“The rupiah exchange rate fluctuation had the potential to increase inflation, but that did not happen because of food stable prices. We will maintain the condition to assure that [inflation] is equal to the figure stated in the state budget,” she added as reported by kompas.com. (bbn)

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