"Looking at the result of a price survey, we forecast that we will witness a deflation of -0.04 percent month-to-month, (bringing the inflation to) 3.03 percent year-on-year," BI Governor Perry Warjiyo stated here on Friday.
Warjiyo has forecast that the prices of food items, including beef, chicken meat, and eggs, will decline this month, while the price of rice will remain stable.
"This proves that the government`s policies, particularly those related to the supply and distribution of food items, have run properly, so the country`s inflation remains low and under control," he noted.
Hence, he believes that the inflation target of 2.5-4.5 percent for this year will be achieved, and this year`s inflation will be lower than the mid-target rate of 3.5 percent.
He further expressed gratitude to the government that had continued to ensure the supply and distribution of foodstuffs.
The controllable expectation of the inflation rate at the consumer, producer, and money market levels has also encouraged deflation, he stated.
"Hence, the expectation of the inflation rate remains under control," he added.
Reporting by Citro Artmoko
Editing by Suharto
Reporter: Antara
Editor: Yosep Hariyadi
Copyright © ANTARA 2018
