"Inflation in October will be very low or there will even be a deflation. My prediction is between minus 0.1 percent and 0.1 percent," the central bank`s governor, Darmin Nasution, said here on Monday.
He said the low inflation in the month had been under BI prediction before the bank decided to lower the BI Rate on October 11 from 6.75 to 6.5 percent, including overall inflation in 2011 and projected inflation in 2012.
"We will certainly conduct an evaluation. That the inflation rate will be low in October we already know but our rate policy is we do not always make adjustment every time the inflation rate is low but we will evaluate and study it in which we would not only study the rate of inflation today but also inflation expectations in the future. Next year the rate of inflation will be a bit below five percent," he said.
BI earlier predicted the rate of inflation in 2011 would be at 4.5 to 4.6 percent or below the initial prediction of five percent.
The rate of inflation in 2012 is projected at also below five percent due to the impact of electricity price hike.
The National Statistics Agency (BPS) recorded the rate of inflation in September 2011 was at 0.27 percent down from 0.93 percent in August.
So, the rate of inflation in the calendar year from January to September 2011 was at 2.97 percent.
(Uu.H-YH/HAJM/O001)
Editor: Priyambodo RH
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