BI Governor Perry Warjiyo stated here on Friday that the inflation forecast was based on the results of a price monitoring survey (SPH) conducted by BI until the third week of November 2019.
If the estimation is precise, inflation for the calendar year of January-November 2019 will be 2.41 percent yoy.
Warjiyo opined that inflation in November 2019 resulted from the prices of some foods, particularly onions, which rose 0.08 percent and chicken meat that increased 0.05 percent.
"Until the end of the year, the CPI inflation is estimated to be around 3.1 percent yoy," Warjiyo stated.
However, the declining prices of foods, such as red chilies, dropping 0.07 percent, and cayenne peppers, reducing 0.02 percent, also contributed to the deflation.
"This shows that inflation until November is still low and under control. BI believes inflation will remain low and stable until the end of the year," Warjiyo explained.
At the end of the year, the Central Bank estimates that inflationary pressures will rise due to high consumption, specifically during the Christmas and New Year holidays. Hence, annual inflation of 3.04 percent yoy in November 2019 will increase to 3.1 percent yoy.
Nevertheless, the 2019 inflation forecast of 3.1 percent is yet below the Central Bank's inflation targeting framework this year at 2.5 percent-4.5 percent yoy.
"December is the end of the year and there are religious holidays, so there will be an increase," Warjiyo stated.
Related news: BI projects October inflation at 0.08%
Related news: Agitation against bills will not affect inflation: BPS
EDITED BY INE