"I think it is still safe in May. We must be careful from June onwards due to the start of the fasting month, especially with regard to staple commodities, such as rice, chicken, and chili, whose supply must be adequate to prevent the prices from fluctuating," Sasmito noted here on Monday.
Sasmito emphasized that the relatively controlled prices of basic food commodities, such as rice and chicken meat, had reduced the national inflation rate from January to April 2016.
In addition, the low inflation rate was supported by a decline in the fuel prices and land and air transportation fares due to which the inflation rate was recorded at only 0.16 percent.
The low rate makes the inflation target of below four percent by the end of the year still achievable as long as the government continued to maintain the supply of basic food commodities, especially during the Islamic month of fasting and Eid.
"As long as the fuel prices are not increased, the food prices remain stable, and adequate supply of food ingredients is maintained, then the four percent (inflation target) is still achievable," remarked Sasmito.
Sasmito also pointed out that there was a small likelihood of deflation in May 2016 similar to that in April 2016 since there was no hike in the electricity rates, which could affect the overall national inflation.
"The price of rice is likely to decline at the retail level, and energy prices will remain stable in general. We expect Mays inflation to be below 0.5 percent. Although there will be no direct impact on the electricity tariffs, but it will trigger a decline in the price of rice," he pointed out.
Earlier, the statistics agency had recorded a 0.45 percent deflation in April 2016, the highest in the same period since 2000, supported by the falling prices of energy and food commodities.
There was a decrease in the prices of some of the consumer goods and services, such as petrol, red chili, rice, fresh fish, electricity, chicken, chili, eggs, potatoes, city transportation fares, air freight rates, long beans, mustard greens, intercity fares, and diesel oil.
Nonetheless, the prices of some consumer goods and services, such as onions, tomatoes, garlic, carrots, apples, oranges, papaya, cooking oil, cigarettes, filter cigarettes, and home contracts still increased. (*)
Editor: Heru Purwanto
Copyright © ANTARA 2016
