Lebaran Inflation Rate Under Control: Sofyan Djalil

TEMPO.CO, Jakarta - Coordinating Economic Minister Sofyan Djalil said that the inflation rate in July was under control with an insignificant rise after the Lebaran holiday.

“Usually the inflation rate jumps significantly during the Lebaran season. From early July to middle of the month, prices generally increase, but still acceptable,” Sofyan told Tempo at the Presidential office on Wednesday, July 22, 2015.

Sofyan forecasted that there would be a deflation by the end of this month in hopes that the month-to-month inflation rate would be under control. Sofyan admitted that the low inflation rate was caused by a decreasing trend in consumption indicating low purchasing power among public.

Sofyan added that the low purchasing power was indicated by an increase in the number of flight ticket sales during the homecoming season and a decrease in ticket sales for sea transportation. In addition, the decreasing trend in public purchasing power was felt in commodity-producing areas, such as Kalimantan and Sulawesi.

Bank Indonesia governor Agus Martowidjojo said that the inflation rate was still under control since the government performed control measures on volatile food prices. Agus predicted that July’s inflation rate would stood somewhere between 0.46 percent and 0.6 percent.

ALI HIDAYAT