Deflation in October, Finance Minister Says
12 August 2013 17:04 WIB
TEMPO.CO, Jakarta - Finance Minister Chatib Basri forecasted inflation in the country would begin to normalize in September and turned into deflation in October. “Deflation is expected to take place, triggered by the realization of import of several food products,” Chatib said last Thursday at the presidential palace.
Previously, the Central Bureau of Statistics reported inflation in July reached 3.29 percent—the highest monthly figure since the economic downfall in 2008. Chatib said the inflation in August would be lower than that of July although it had yet to touch the normal level.
Chatib predicted the inflation target at the year’s end of 7.2 percent would be difficult to meet following the rising prices of a number of commodities. However, he said, the government would continue to curb the inflation so it would not stray afar from the original target.
“We will try our best to shun a far-off deviation,” he said.
Earlier reports said the government had set an inflation target of 7.2 percent for the 2013 Revised State Budget, with Bank Indonesia predicting the year-on-year inflation at the end of the year reaching 8 percent.
The inflation surge in July was mainly triggered by the increased prices of both subsidized and non-subsidized fuels, garlic, and higher transport tariffs.
ANANDA TERESIA | R.R. ARIYANI
