BI projects May 2019 inflation at 0.47 percent

BI projects May 2019 inflation at 0.47 percent

Jakarta (ANTARA) - Bank Indonesia (BI) has projected the inflation will reach 0.47 percent month on month in May 2019, falling short of the target based on a previous price survey due to a shortfall in air tickets, among others.

"Our records show that the prices of air tickets have fallen. Based on our calculation, if the prices of air tickets fall, the shortfall will contribute minus 0.01 percent to the inflation, BI Governor Perry Warjiyo said here on Friday

The inflation forecast of 0.47 percent for May 2019 is based on the results of a price survey conducted by the central bank across Indonesia in the fourth week of 2019.

The forecast fell four basis points compared to the inflation projection of 0.51 percent until the third week of this month. If the BI projection is true, the inflation in May 2019 will reach 3.1 percent year on year.

The decline in the prices of several commodities, including rice, tomato and vegetables, also contributed to the deflation in May 2019. However, the central bank refused to divulge by how much the prices of these commodities had dropped.

Meanwhile, the prices of red chillies, garlic, chicken and eggs are on the rise.

BI, which is mandated to keep inflation on target, has set the target at 2.5-4.5 percent at the end of 2019.