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BI Projects August Inflation at 0.3%

31 August 2015 13:00 WIB

TEMPO/Dasril Roszandi

TEMPO.CO, Jakarta - Bank Indonesia governor Agus Martowardojo projects a 0.3 percent monthly inflation in the consumer price index for August 2015. The projection is based on the central bank's weekly survey.

According to Agus, inflation as of the fourth week of August is quite low in the past five years. On a year-on-year (yoy) basis, inflation rate is still at 7.08 percent.

"We hope the number will improve by the end of the year to under 4.5 percent," he says.

In July, inflation was recorded at 0.93 percent, the same as in July 2014. From January to July, inflation was recorded at 1.9 percent with a yoy record of 7.26 percent.

Economic observer from the Institute for Development of Economics and Finance (Indef), Enny Sri Hartati, also projects August's inflation at 0.3 to 0.4 percent.

She says that the low inflation is closely related to the fact that the people's purchasing power is on the low due to the rupiah correction against the US dollar.

ADITYA BUDIMAN | ANDI RUSLI




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