BI: Inflation to Remain High until November
30 January 2015 12:52 WIB
TEMPO.CO, Jakarta – Bank Indonesia (BI) has estimated that the rate of inflation will remain high until November this year. The central bank's governor Agus Martowardojo is projecting a year-on-year (yoy) inflation of eight percent, the after effect of last year's fuel price hike.
"By November 2015 the number might go down," Agus said yesterday.
He said that fuel price increases affect inflation by about 0.6 percent. As long as inflation remains high, he said, the central bank will not lower its benchmark interest rates (BI Rate).
Suryamin, head of the Central Statistics Agency, said that even though subsidized fuel prices were cut early this year, other tariffs and commodity prices—that went up when fuel prices were raised—remain high. One of them is public transportation fares.
Suryamin said that transportation costs are very influential in setting the prices of other commodities. A decline in fuel prices should ideally be followed by a decline in transportation fares, so that commodity prices will decline and "inflation rates will drop gradually."
ODELIA SINAGA | TRI ARTINING PUTRI | EDI FAISOL
