Harvest Season Supports 0.03 Percent Deflation in April
2 May 2014 11:14 WIB
TEMPO.CO, Jakarta - An economist at PT BNI Securities, Hery Irvansyah, said the inflation rate in April is predicted to be lower than the previous month, which is at -0.03 percent (month on month).
"The harvest season in April has become the key factor in suppressing the inflation rate," Hery stated in a research received by Tempo yesterday.
Data in the first quarter of 2014 shows the inflation rate could be suppressed at under 0.5 percent, while rupiah exchange rate against US dollar had showed improvement.
Food supplies have been secured by harvests in a number of regions, causing food prices to decrease.
The stable inflation rate was also a result of monetary and fiscal reforms, said Hery. "The interest rate maintained at 7.5 percent has been effective in suppressing demands, causing inflation to be controlled at a low level."
PDAT | M. AZHAR