BI predicts Fbruary 2019 inflation at 0.07 percent

BI predicts Fbruary 2019 inflation at 0.07 percent

Bank Indonesia Governor Perry Warjiyo (ANTARA FOTO/Aprillio Akbar/ama).

Jakarta,  (ANTARA News) - Bank Indonesia (BI) has predicted that inflation will increase 0.07 percent month-to-month (mtm) in February, based on the results of the price survey.

"Based on the price survey conducted in the first week of February, we predict the inflation will be 0.07 percent in February so the year-on-year inflation will reach 2.72 percent," BI Governor Perry Warjiyo said here on Friday.

If the BI`s forecast turns out to be true, the year-on-year inflation in February 2019 will be 2.72 percent, lower than the yearly inflation target range of 2.5 to 4.5 percent or 3.5, plus and minus 1 percent.

The BI governor believed the inflation until the end of February 2019 will be far below the January 2019 inflation of 0.32 percent as the prices of commodities remained controllable.

"This also confirms our forecast that the inflation at the end of this year will be lower than the mid point of the inflation target of 3.5 percent," he said.

The Central Statistics Agency (BPS) announced earlier that Indonesia`s inflation rose 0.32 percent in January 2019 partly due to an increase in the prices of fresh fish, rice, and vegetables,

"January`s inflation was influenced by the prices of fresh fish, rice, and vegetables," BPS Chief Suhariyanto remarked at a press briefing here on Friday (February 1).

The price hike contributed to the inflation of foodstuffs, recorded at 0.92 percent, he noted.

"Fresh fish recorded an inflation of 0.06 percent, and rice witnessed an inflation of 0.04 percent. Actually, the rice price hike was normal in several cities, as the price was relatively stable," he revealed.

Reporting by Indra Arief Pribadi, Suharto
Editing by Eliswan Azly