Bank Indonesia sees inflation at 0.01% in August

Jakarta (ANTARA) – Bank Indonesia has forecast 0.01 percent monthly inflation in August 2021 in view of the price development of cooking oil, tomato, chicken egg, and cigarette.

“With that development, the year-to-date inflation is projected to be around 0.82 percent while the year-on-year inflation will be around 1.57 percent for August 2021,” executive director of Bank Indonesia’s communication department, Erwin Haryono, said in a statement released here on Friday.

Based on Bank Indonesia’s Price Monitoring Survey (SPH), until the fourth week of August 2021, the biggest contributors to inflation were cooking oil commodity (0.03 percent month-to-month), tomato (0.02 percent mtm), and chicken, egg, and cigarette (0.01 percent mtm each), he informed.

However, other commodities experienced a deflation — cayenne pepper (-0.05 percent mtm), red chili pepper (-0.03 percent mtm), and kale, spinach, mustard greens, long beans, onions, oranges, golden jewelry, and intercity transportation (-0.01 percent mtm each).

Governor of Bank Indonesia, Perry Warjiyo, had earlier stated that the yearly inflation for 2021 will be in the range of two to four percent. This inflation target will be preserved in 2022, he added.

The central bank, in a statement released on Friday, said it will continue to strengthen coordination with the government and related authorities to sharply observe the dynamic of COVID-19 spread and its impact on Indonesia’s economy.

Bank Indonesia said it will also coordinate policies for preserving the stability of the macro-economy and the financial system, as well as for supporting the growth of a resilient Indonesian economy.

In his statement, Haryono also revealed that the amount of foreign capital that flowed into Indonesia stood at around Rp7.67 trillion this week.