BI Predicts Inflation to Rise in May

TEMPO.CO, Jakarta - Bank Indonesia (BI) has predicted that the monthly inflation figure for May 2015 is expected to be at around 0.36 percent, or 6.79 percent year-on-year— higher than April's inflation figure. 

"Indonesia's year-on-year inflation is expected to increase slightly, but it is still on track. In June or July, inflation is expected to rise as the Eid holiday period falls in that period," said the executive director for the Department of Economic and Monetary Policy, Juda Agung, in Jakarta. 

Jude stopped short of detailing the exact numbers for May, but stated that BI records indicated that May's monthly inflation figure has reached 0.4 percent in the third week of May, or 7.4 percent year-on-year. 

According to Juda, inflation is expected to increase further during the Eid holiday period, which means that both consumers and the government need to be aware of irregular price hikes across several commodities—especially rice, chilies, alliums, as well as beef and poultry products. 

"Inflation figure was actually quite high last year, but the administration managed to keep the prices of several commodities, including chilies, in check during the holiday period," said Juda. 

"That said, we need to remain vigilant of the availability of food stocks in our reserves," he continued. "As long as stocks are available, inflation could be reined in." 

It is known that BI aims at keeping inflation within one percent of four percent. 

ANTARA