TEMPO.CO, Jakarta - Inflation rate by the end of this year is estimated at 2.85 percent, lower than what Bank Indonesia (BI) targeted, which was 4.0 percent +/- 1.0 percent. Universitas Indonesia economist Lana Soelistianingsih said that the low inflation is caused by the many deflations that happened throughout the year.
"From January to October, we had four months of deflations," she said, triggered by declines in food prices that started in August.
Meanwhile, BI executive director for monetary policies Yudha Agung predicted that the year-end inflation rate could reach 3.0 percent.
For November, Yudha estimated a 0.13-percent inflation. If December's inflation is at 0.5 percent, the annual inflation rate target of 3.0 could be achieved.
As for this year's annual growth, Yudha said it would stand somewhere between 4.7 and 4.8 percent.
BI governor Agus Martowardojo had said that inflation as of the third week of November was at 0.2 percent, a number he expected to stay unchanged until the end of that month.
ADITYA BUDIMAN | EGI ADYATAMA | GHOIDA RAHMAH
