"The inflation is high not because it was not under control but because it has been a fact that inflation is always high in January and February, usually due to the volatility of food prices," Hatta said after he opened the Islamic Book Fair XII at the Senayan Sports Palace here on Friday.
Hatta said that each time the prices were on the rise, particularly essential goods prices, the government intervened in the market.
"But it was difficult to intervene in the market if price hikes were those of horticulture products. Yet, supply and demand of these products could be controlled," he said.
In order to control horticultural product supply, import can just be carried out, the minister explained.
"We should not be too suspicious with import when prices are too high because inflation would adversely burden (the economy)," he said.
But import policy should not harm domestic products, either. "High inflation would cost a lot to the people`s spending," he added.
Inflation rate in February 2013 was recorded at 0.75 percent, the highest level of February inflation in the last 10 years, said the head of the Central Bureau of Statistics (BPS) Suryamin here Friday.
"This inflation is quite high, the highest one in the last ten years," he said in a press conference.
Suryamin said that the high February inflation was among others caused by the government`s policy restricting the importation of horticultural commodities.
This triggered price hikes while domestic demand and supply was still in the process of adjustment.
Suryamin expected that the government would anticipate the rise of other commodity prices as the inflation rate at the beginning of this year has already been high.
"Hopefully the inflation would not be too high in the future and would not put pressures on prices," he said.
The February inflation was also affected by general inflation at 0.75 percent, core inflation 0.30 percent, government regulated prices 0.72 and volatile prices 2.23 percent.
"The government regulated electricity tariff price hike imposed at the beginning of the year also affected the inflation," he added.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2013
