TEMPO.CO, Bantul - Institute for Development of Economics and Finance (INDEF) economist Bhima Yudhistira Adinegara estimated that inflation on August will tend to be low despite Eid al-Adha. He even expressed that there is a potential for deflation.
"We predicted that there is a potential for deflation on August. However, we estimated that there will be a low inflation rate of 0,04 percent," he said on Saturday, September 1. Annually, the inflation rate is estimated to reach 3 percent.
Read: Bank Indonesia: Inflation Rate at 0.02 Percent in August
Low inflation is triggered by stabilized food prices. Even in the moment of Islamic Sacrifice Day Eid al-Adha, meat prices are stable. It goes the same with other prices such as rice and sugar.
Based on administered price component, Bhima stated that there have not been any adjustments. "Electricity and 3-kilogram Liquid Petroleum Gas (LPG) are safe since adjustments were made last semester," he said.
Bhima analyzed that there is a seasonal factor that pushes inflation on August which is educational expenses. Despite the fact that new academic year begins on July, Bima stated that seasonal expenses remain to occur. In addition, inflation can also be triggered by transportation during a long holiday, but it is not much.
VINDRY FLORENTIN
