TEMPO.CO, Jakarta-Executive Director for Economy and Monetary Policy of Bank Indonesia, Juda Agung, said until the third week of this month, inflation has reached 0.1 percent. “This is normal after last month’s deflation. A 0.1 percent inflation is small,” Juda said in Grand Hyatt, Central Jakarta, on Tuesday, May 24, 2016. In May last year, monthly inflation reached 0.5 percent.
Juda believes the inflation occurred because commodity prices begin to rise toward fasting month and Eid holiday. However, the phenomenon must be controlled. “Last year was good, it could be controlled,” said Juda.
This year, government will implement the similar control, so the commodity prices would remain stable in the upcoming months; June and July. “Central and regional government will try their best to control prices, so it will not go up,” he said.
Last April, the Central Statistics Agency released a data showed that a deflation of 0.45 percent had occurred, while an inflation of 0.19 percent occurred in March. The deflation was the highest since 2000 in the same month.
Last April’s deflation occurred because of the decreased in the index group expenditure, including food material group of 0.94 percent and housing group comprising water, electricity, gas, and fuel of 0.13 percent. Other group including transportation, communication, and finance service also fell 1.6 percent.
ANGELINA ANJAR SAWITRI
