"The inflation rate remains low and under control," Chief Executive Director of the BI Communications Department Erwin Haryono noted in a written statement released on Friday.
Based on the development, BI has forecast the calendar year inflation to reach 0.75 percent and year-on-year inflation to touch 1.45 percent in July 2021.
The July 2021 inflation until the fourth week was chiefly fueled by red chilis, at 0.04 percent; tomatoes, 0.02 percent; and onion, kale, spinach, long beans, and cigarettes, contributing 0.01 percent each.
However, several commodities contributed to the deflation, with the prices of purebred chicken meat decreasing 0.09 percent; purebred chicken eggs, 0.03 percent; gold jewelry and oranges, 0.02 percent each; and air tickets, 0.01 percent.
BI will continue to coordinate with the government and related authorities to monitor the spread of COVID-19 and its impact on the national economy, Haryono affirmed.
"Subsequent steps for coordination should be taken to maintain macroeconomic and financial system stability as well as to support Indonesia’s economic growth," he stated.
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Meanwhile, Bank Indonesia (BI) has revised downward its forecast for national economic growth in 2021 to 3.5-4.3 percent from 4.1-5.1 percent citing the spread of the Delta variant of COVID-19.
The revision has been necessitated by the COVID-19 pandemic, which could disrupt third-quarter economic performance, BI Governor Perry Warjiyo said while announcing the outcome of the meeting of the central bank's board of governors here on July 22, 2021.
"The economy is expected to grow lower in the third quarter of 2021 owing to the government's policy to enforce public mobility restrictions to contain the spread of the Delta variant of COVID-19," he said.
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