Statistics Indonesia (BPS) announced that the country recorded a 0.18 percent deflation in September and 0.05 percent in August. The latest figure brings year-to-date (ytd) inflation to 1.94 percent, while year-on-year (yoy) inflation stands at 2.88 percent.

“[The fuel price increase] will become the pushing factor for the inflation rate in October, in addition to the price increase of red chili,” Perry said as reported by kompas.com.

He estimated that up to October, ytd inflation would be recorded at around 3 percent and by the end of the year, inflation would be still within the target of 3.5 percent, plus and minus 1 percent.

Based on BI’s observation, core inflation — administered prices and staple foods prices — was still low, Perry said, adding the price of some basic commodities like chicken meat and shallots even showed deflation.

“The inflation will be still low. It will confirm our estimation that it will be lower than 3.5 percent by the end of 2018,” he added.

BI has set a target of keeping inflation between 2.5 and 4.5 percent this year, as outlined in the 2018 state budget. (bbn)

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