"The inflation prediction remains lower than the national forecast of 4.9 percent," BI Deputy Governor Marlison Hakim noted here on Monday.
The strategic policies include the governments decisions to hike electric power tariffs and the price of liquefied petroleum gas (LPG) in the 12-kg cylinder category, yet the inflation rate is expected to remain at a manageable level, he stated.
The delayed harvest period in disaster-struck areas and the threat of the El Nino weather phenomenon may also have an impact on farm production, he pointed out.
"The planned increase in the price of LPG in the 12-kg cylinder category to Rp6,944/kg from Rp one thousand/kg, which will come into effect from July 1, may also affect the inflation rate," he stressed.
The increase in the price of LPG in the 12-kg cylinder category in July 2014, which coincides with the holy fasting month of Ramadhan, may raise the monthly inflation rate to 0.1-0.3 percent, he explained.
He remarked that a team of regional inflation controllers (TPID) will soon monitor food supplies in the lead up to the Idul Fitri festivities and check the likelihood of irresponsible parties hoarding fuel and LPG.
Indonesias inflation rate rose slightly in December 2013 to reach 8.38 percent, according to the Central Statistics Agency (BPS).
(S012/INE/B003)
Reporting by Aris Wasita Widiastuti
EDITED BY INE
(KR-BSR/B003)
Editor: Jafar M Sidik
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