"The market is now flooded with new supply."Jakarta (ANTARA News) - Coordinating Minister for Economy Hatta Rajasa hoped the food prices would fall in the next months to offset the surge in prices lately and prevent inflation from overshooting the target set for this year.
The government has been concerned with the soaring prices of red onion and garlic fearing to trigger a surge in inflation, he said here on Monday, adding the government has set inflation target at 4.9 percent this year.
Seeking to appease grumbling housewives Hatta said the rising trend of onion price had been over, adding the price would fall with a number of containers of onion released in the market.
"The market is now flooded with new supply. The prices are on the decline," he noted.
He said the price of rice has remained stable with sufficient stocks, adding the government is set to keep balance in supply and demand to prevent inflation.
Earlier head of the Central Bureau of Statistics (BPS) Suryamin inflation in February was 0.75 percent on month or the highest in the same month in the past 10 years.
Suryamin attributed the higher than normally inflation in February partly to government policy restricting imports of horticulture.
He said the government is expected to be able to bring down the prices of red onion and garlic as inflation so far this year was already high.
The country`s inflation in the calendar year January-February reached 1.79 percent.
"The rise in the electric tariff effective earlier this year began to have its effect," he said.
Foodstuff is still the main contributor to inflation, followed by housing, water, electricity, gas and fuel, he said.
(Uu.H-ASG/B003)
Editor: Priyambodo RH
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