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BI Predicts 0.35 Percent Inflation in February

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17 February 2017 18:00 WIB

TEMPO.CO, Jakarta - Bank Indonesia (BI) predicted that the inflation rate in February 2017 would be 0.35 percent. BI Governor Agus Martowardojo said the inflation rate was favorable since the figure stood at 0.97 percent in January.

"Certainly this is better because we were concerned with the inflation rate in January," Agus said at the BI Complex in Jakarta on Friday, February 17, 2017.

According to Agus, this month’s inflation rate would still be affected by electricity price adjustment, in addition to prices of volatile foods, such as chili pepper, cayenne pepper, and red onion.

"However, chicken and eggs experienced deflations," Agus added.

Earlier in January, the Central Statistics Agency recorded a 0.97-percent inflation in January or 3.49 percent year on year. The inflation was mainly affected by administered prices, which contributed 2.57 percent to the inflation.

Components with the highest contribution to the inflation rate included vehicle administration fee hikes, fuel price adjustment, and electricity price increase for 900 VA customers.

ANGELINA ANJAR SAWITRI

Inflation


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