Inflation Target of 4 Percent May be Achieved: BPS

TEMPO.CO, Jakarta - The Central Statistics Agency (BPS) believed that it was possible to achieve Bank Indonesia`s inflation target of 4 percent, plus or minus 1 percent, for 2015, citing that inflation was 2 percent during January-September period.

"I think it will be achieved. At the end of September, inflation rate had reached 2.24 percent. We still have three months left," BPS Deputy Chief for Distribution and Service Statistics, Sasmito Hadi Wibowo, said  on Thursday.

He said the country still has a chance of recording deflation in October. However, infrastructure development may raise inflation rate, albeit the increase will be relatively small.

"Based on the wholesale price index (IHPB), the construction index has risen significantly. The index will continue to rise and have an impact on household goods such as cement. This will likely make it difficult for the country to record deflation. I think there will be inflation, albeit relatively small," he said.

The IHPB for building/construction materials rose 0.15 percent in September from a month earlier, driven by the increase in the prices of water tanks at 0.97 percent, air conditioners at 0.96 percent, electrical apparatuses at 0.74 percent and sand at 0.65 percent, he said.

The IHPB for raw materials, consumer goods and capital goods in August 2015 rose by 0.87 percent, 2.89 percent and 0.58 percent, respectively, he said.

With the inflation being kept in check and productivity increasing, the economic growth in the third quarter will be higher than in the previous quarter, he said.

ANTARA