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Year-End Consumption Lowers Inflation Rate, BI Says  

Translator

Editor

24 October 2018 13:11 WIB

TEMPO.CO, Jakarta - Bank of Indonesia predicted that inflation rate in November will be recorded around 0.4 to 0.5 percent, which is higher than the rate recorded in October at 0.09 percent.

"Inflation will increase in November and December, but price monitoring survey in the first week [of November] is still around 0.1 percent," BI Deputy Governor, Perry Warjiyo said on Sunday, November 17.

Nevertheless, Perry hoped that the prediction is wrong and inflation can be recorded on a level lower than 0.4 percent. November inflation, as Perry explained, is triggered by high consumption rate nearing the end of the year.

"It's not an extraordinary thing," he said.

Perry denied that the inflation is caused by the increasing vegetable and fish prices following the decreasing supply of both commodities in rainy season.

"No. This inflation is purely seasonal," he said.

BI predicted that this year's inflation will be slightly lower than nine percent, correcting the previous statement of 9 to 9.8 percent. In 2014, BI predicted that inflation rate will be back to around 3.5 to 5.5 percent.

MARTHA THERTINA



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