"An increase in the price of onion will bite when there was no rice harvest."
Jakarta (ANTARA News) - Inflation that surged to a record high in February could be pressed down if the country has a good harvest in March, an official predicted.

Inflation is normally low in March because of rice harvest, heads of the Fiscal Policy Board at the Finance Ministry Bambang Soemantri Brodjonegoro said.

The prices of other commodities will contribute to an increase or a decline in inflation, but success in rice grand harvest could curb inflation, Bambang said.

"Rice harvest should be able to neutralize market prices in March and April," he said here on Thursday.

The surge in the prices of other commodities such as garlic, the price of which skyrocketed lately could inflict bad damage when there is no rice harvest, he said.

"An increase in the price of onion will bite when there was no rice harvest," he added.

Meanwhile, Bank Mandiri`s chief economist Destry Damayanti said the rise in the prices of red onion and garlic could result in a surge in the country`s inflation in March.

Inflation in March could be curbed to 0.2 percent to 0.3 percent with falling prices of other food commodities, Destry predicted.

The inflation could be higher or lower than the expectation but it would certainly be higher than the annual average, she said.

In March and April, most of the country will have grand harvest,which would likely bring down inflation, she said.

However, in following months of June and July inflation is expected to crawl up again with the coming of Ramadhan, the Islamic fasting month and new academic year, she added.

The government, therefore, is expected to review its policy in horticulture imports to prevent scarcity in food supply, she said.

Critics have blamed the government policy restricting imports of horticulture for the recent surge in the prices of onion and garlic.

Earlier, head of the Central Bureau of Statistics (BPS) Suryamin said inflation of 0.75% in February was the highest in February in the past 10 years.

Suryamin attributed the surge in February`s inflation partly to the government`s horticulture policy.
(Uu.H-ASG/O001)

Editor: Priyambodo RH
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