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Indonesia: August Inflation Expected to be Low
TEMPO.CO, Jakarta – Economist at SKHA Institute for Global Competitiveness, Eric Alexander Sugandi estimated that inflation in August would not be high. According to him, there is even a potential of deflation, albeit small.
Eric added that low inflation was triggered by the prices of basic food that have gone back to normal, especially after Eid Day. “Price normalization for several food commodities has contributed to low inflation in August,” he said on Saturday, September 2.
In addition, pressures from administered prices were no longer felt, including basic electricity rate, he said.
Eric also estimated that inflation in August would reach 0.05 percent month to month or 3.94 percent year to year. In July, inflation was reported to be around 0.22 percent month to month or 3.88 percent year on year.
Governor of central bank Bank Indonesia Agus Martowardojo previously said that there would be potential of deflation in August.
Based on the price monitoring survey (SPH) conducted by Bank Indonesia, August inflation is expected to be around only 0.01 percent; thus, there is still room for deflation.
Data on August inflation will be released by the Central Statistics Agency (BPS) on Monday.
Source: https://en.tempo.co/read/news/2017/09/02/056905463/August-Inflation-Expected-to-be-Low