Bank Indonesia Predicts May 2017 Inflation at 0.37 percent

• May 27, 2017

TEMPO.CO, Jakarta – Bank Indonesia has predicted the May 2017 inflation rate will stand at 0.37 percent month-to-month. It is due to a rise in the prices of garlic, chicken meat, eggs and transportation tariffs, as well the rising public consumption at the start of the fasting month of Ramadan.

“In the run-up to Ramadan, the demand is high,” BI Governor Agus Martowardojo said on Friday, May 26. 

The May 2017 inflation forecast is based on the results of a survey conducted by the central bank on the prices of commodities until the third week of May 2017, Agus said.

If the forecast proves to be true, the annual inflation rate in May 2017 will reach 4.31 percent, which is at the upper limit of the inflation target of 3 to 5 percent YoY set by Bank Indonesia, he said. 

Agus further said the central bank will step up its coordination with the government to increase the role of regional inflation control teams (TPIDs) in all provinces to anticipate inflation rate hike during Ramadan.

“BI and TPIDs have held discussions and coordination and asked the public to help control (inflation). We need to convince the public that supplies are enough. They need not buy large quantities of foodstuffs,” he said.

The result of a survey conducted by Bank Indonesia in the second week showed the May 2017 inflation rate at 0.27 percent month-to-month.

Despite the new development of the inflation rate, he believed it will stay with the inflation target of 4 percent plus and minus 1 percent for this year. 

Source: https://en.tempo.co/read/news/2017/05/27/056879146/Bank-Indonesia-Predicts-May-2017-Inflation-at-037-percent