Inflation in April 2019 kept under control: BI

Inflation in April 2019 kept under control: BI

The Headquarters of Bank Indonesia (ANTARA FOTO/Bernadus Tokan)

Jakarta (ANTARA) - Executive Director of the Bank Indonesia (BI) Communication Department Onny Widjanarko reported that inflation in April 2019 was kept under control.

The Consumer Price Index (CPI), as an indicator of headline inflation, was measured at 0.44 percent month-to-month (mtm) in April 2019, rising from 0.11 percent mtm a month earlier, Widjanarko noted in a statement received in Jakarta on Monday.

The April inflation arose mainly from pressures on volatile foods (VF) and administered prices (AP), while core inflation stayed comparatively stable.

Hence, yearly, the CPI inflation was recorded at 2.83 percent year-on-year (yoy) during the reporting period, increasing from 2.48 percent yoy a month earlier, he stated.

With its sights set ahead, BI will make consistent efforts for maintaining stability in the prices and boosting policy coordination with the central and regional governments to ascertain that inflation stays low and stable within the target corridor for 2019 at 3.5 percent, give or take one percent.

Moreover, during this time, coordination with the government and other related authorities has chiefly prioritized controlling inflationary pressures during the holy fasting month of Ramadan and Eid-ul-Fitr 1440, Widjanarko explained.

VF inflation was measured at 1.59 percent mtm in April 2019 after deflating 0.02 percent mtm in the previous period.

Widjanarko pointed out that the prices of shallots, garlic, red chilies, tomatoes, purebred chicken eggs, and bird’s eye chilies led to the VF inflation edging up. In comparison, rice, purebred chicken meat, and fresh fish underwent price corrections. Yearly, the VF inflation was relatively low, at 2.05 percent yoy, despite increasing from 0.16 percent yoy a month earlier.

Inflationary pressures on administered prices also rose. AP inflation was recorded at 0.16 percent mtm in April 2019, rising slightly from 0.08 percent mtm during the previous period.

Widjanarko remarked that price pressures arose from airfares and filtered clove cigarettes, while electricity rates underwent another period of deflationary pressures. Hence, yearly, the administered prices recorded an inflation of 3.17 percent yoy during the reporting period, dropping from 3.25 percent yoy a month earlier.

Core inflation was kept under control in April 2019, standing at 0.17 percent mtm during the reporting period, comparatively stable than 0.16 percent mtm posted a month earlier. House rentals and motor vehicles chiefly contributed to the higher core inflation.

Widjanarko stated that yearly, core inflation was measured at 3.05 percent yoy, comparatively unmoved, from 3.03 percent yoy during the earlier period.

Core inflation was successfully controlled via BI's policy consistency to anchor rational inflation expectations, including intervening to ascertain that the rupiah exchange rates move in accordance with the currency’s fundamental value.