TEMPO.CO, Jakarta - Bank Indonesia governor Agus Martowardojo said that inflation rate as of the third week of July is quite low at 0.76 percent. The central bank had predicted that Eid-triggered price increases would push inflation to reach 1.12 percent by said period.
"Inflation for the third week turned out to be lower than what we initially projected. This condition is still maintained," he said yesterday.
Therefore, Agus is optimistic that the year-end inflation will be at safe level of 3.0 to 5.0 percent.
He also projected that economic growth in the third quarter will rise to 5.3 percent from 5.2 percent in the previous quarter.
"Indonesia is actually ready to face the global economic uncertainties," he said.
Bank Indonesia and the Finance Ministry had predicted July 2015's inflation—a time of Eid celebration—will be at a fi-year-low. Since 2010, July inflation had always averaged at 0.85 percent.
The Central Statistics Agency (BPS) recorded that economic growth in the first quarter reached 4.71 percent, down 0.5 percent, year-on-year (yoy).