Jakarta (ANTARA News) - Mandiri Sekuritas economist Destry Damayanti said inflation in October 2001 may increase but oly slightly, namely by 0.2 percent.

"There is no possibility for deflation to take place in October this year, not matter how small it is," Destry said here on Tuesday.

She said that the weakening of the rupiah currency exchange rate in the last two months was one of the factors that could raise inflation in October.

"The rupiah`s value was relatively low in the last two months and usually up to one to two months thereafter its inflationsry effect would come to the surface," Destry said.

However, she said, the inflation rate increae would be small and was predicted at 0.2 percent, so that up the end of the year the inflation rate was estimated to settle within a range of 4.6 - 4.7 percent.

"I have seen it in details but if we look at the early figures it would be at 0.2 percent for month-to-month inflation and 4.6 - 4.7 percent for year-to-year one," she said.

Therefore, she said she was optimistic that the the government would easily achieve its target of not more than 5.3 percent.

"I think the government`s target is at safe levlel it can even below 5.0 percent," Destry said.

Based the Central Board of Statistics (BPS) the inflation rate in September 2011 was 2.97 percent month-to-month while the year-to-year inflation was 4.61 percent.

Editor: Priyambodo RH
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