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Inflation in May 2015 Expected to Rise Marginally

30 May 2015 09:24 WIB

Bank Indonesia Minta Inflasi Lanjutan Diwaspadai

TEMPO.CO, JakartaBank Indonesia has predicted that the inflation rate in May will increase slightly from 0.36 percent month-to-month (mtm), or 6.79 percent year-on-year (yoy), in April.

"It (inflation in May) will rise slightly year-on-year, but it is still in line with (our target). However, we must stay alert (for a surge in inflation rate) in June or July ahead of the Idul Fitri festivities," Executive Director of the Economic and Monetary Policies Department of Bank Indonesia Juda Agung said on the sidelines of the sixth national coordination meeting of regional inflation control teams (TPID) here on Wednesday.

Agung refused to divulge the inflation rate in May. However, Bank Indonesia data shows that the inflation rate till the third week of May rose 0.4 percent mtm, or 7.4 percent yoy.

He added that inflationary pressures in the fasting month of Ramadhan and the Idul Fiitri festivities will be relatively high and that relevant parties must stay alert for rise in the prices of several commodities.

"During the fasting month of Ramadan and the Eid al-Fitr festivities last year, the prices of chili could be brought under control. This year, we must continue to stay alert for increase in the prices of all commodities ahead of Idul Fitri," he emphasized.

The commodities include rice, chili, onion, beef, and chicken meat.

Bank Indonesia has set the target of inflation rate for 2015 at 4, plus/ minus 1, percent.

ANTARA




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