Indonesia finance minister hails February`s inflation

Indonesia finance minister hails February`s inflation

M. Chatib Basri. (ANTARA/Fanny Octavianus)

The inflation could still be as per expectations."
Jakarta (ANTARA News) - Finance Minister Chatib Basri has given a positive response to Februarys inflation, which was recorded at 0.26 percent.

"Thank God. It is good. It means the year-on-year inflation may reach 7.75 percent," he stated here on Monday.

Chatib emphasized that with the relatively low rate of inflation, it is estimated that the inflation rate by the end of the year can meet the governments set target of 5.5 percent.

"The inflation could still be as per expectations," he added.

According to Indonesias Central Bureau of Statistics (BPS), the 0.26 percent inflation in February was caused by the high prices of processed food and beverages.

With the February inflation recorded at 0.26 percent, the calendar year inflation for January-February reached 1.33 percent and year-on-year inflation stood at 7.75 percent, BPS noted.

Based on the spending groups, processed food, beverages, cigarette, and tobacco contributed 0.08 percent to the inflation in February followed by the food materials group contributing 0.04 percent.

The transportation, communication, and financial services group meanwhile contributed 0.03 percent, while housing, water, electricity, gas, and fuels contributed 0.04 percent.

Fifty-five of the 82 cities chosen for determining the Consumer Price Index (CPI) suffered an inflation with the highest recorded in Pontianak, West Kalimantan, at 2.73 percent and the lowest in Bandar Lampung, Sumatra, and Probolinggo, East Java, at 0.02 percent each.

Meanwhile, 27 CPI cities reported a deflation with the highest recorded in Sibolga, North Sumatra, at 2.43 percent.

(Reporting by Satyagraha/Uu.H-YH/INE/KR-BSR/A014)