Inflation target can be maintained until 2020-end: BI

Inflation target can be maintained until 2020-end: BI

Bank Indonesia Governor Perry Warjiyo. Antara/Astrid Faidlatul

We believe that inflation will remain under control this year,
Jakarta (ANTARA) - Bank Indonesia believes the inflation rate can be maintained on target at three percent plus -1 percent until the end of 2020. "We believe that inflation will remain under control this year," Bank Indonesia Governor Perry Warjiyo said here Monday.

One reason inflation remained low throughout the year is that the demand in the economic sector was still lower than the production capacity.

In addition, other reasons for the low prices of imported goods and the stable movement of the rupiah according to fundamentals will also affect the inflation rate control.

These reasons were also supported by Bank Indonesia's coordination with the central and regional governments through the regional inflation control team (TPID) to maintain food price stability.

Related news: 2019's CPI inflation stays at target corridor: BI
Related news: Indonesia hits lowest inflation ever recorded in past two decades


"TPID coordination is very close to overcoming short-term disruptions to supplies and ensuring adequate supplies such as rice and cooking oil," Perry said.

Inflation in February 2020 was 0.28 percent due to an increase in the price of food, the Central Statistics Agency (BPS) noted earlier.

Commodities that experienced price increases in this period included garlic, red chilies, chicken, oranges, rice, cooking oil, white cigarettes, cayenne peppers, onions and potatoes.

With the achievement of keeping inflation low in February, the rate for the January-February 2020 calendar year was 0.66 percent and year-on-year inflation was 2.98 percent. 

Related news: Hike in red chili price pushes January 2020 inflation
Related news: National economic growth momentum remains strong


Comments