Bank Indonesia Calculates Effects of Dry Season against Inflation

TEMPO.CO, Jakarta - Bank Indonesia (BI) stated that it has calculated the effects of a long dry season towards the inflation rate until the end of 2019. BI Governor Perry Warjiyo said that although there is a long dry season, the inflation rate can still be maintained.

"The effects of the dry season have been calculated in predicting the inflation rate by the end of the year, some are lower than the average point, under 3.5 percent. Maybe 3.2 percent or around 3.3 percent," Perry said at his office on Thursday, August 22, 2019.

The central bank recorded that the inflation of the IHK on July 2019 was at a level of 0.31 percent, month to month, or is decreasing compared to the inflation in the previous month, which is recorded at 0.55 percent. Annually, July 2019 inflation was recorded at a level of 3.32 percent, a little higher compared to the inflation in the previous of 3.28 percent.

Perry believed that inflation on food products such as rice can still be controlled. Moreover, there are still reserves owned by Bulog, which is reported to be more than enough. Instead, he predicted that inflation will be largely affected by the price of chili.

Nevertheless, the effect of inflation because of chili will be temporary because, in the last two months, a number of regions are recorded to have experienced chili harvest. "And it will certainly affect the chili price increase as a whole towards out inflation," Perry stated.

DIAS PRASONGKO