Statistics Indonesia reported February' inflation stood at 0.28 percent on month to month and for the calendar year was 0.66 percent - Photo: Special

JAKARTA (TheInsiderStories) – Statistics Indonesia reported February’ inflation stood at 0.28 percent on month to month (MoM) and for the calendar year was 0.66 percent (ytd), said the agency today (03/02). While, annual inflation landed at 2.98 percent (YoY).

Deputy at the agency, Yunita Rusanti explained, garlic and tobacco price become an inflation hoover throughout February. Both contributed up to 0.25 percent to the total inflation. From the official data, volatile food experienced the highest inflation in February, 1.17 percent.

“If you look at the development of the inflation rate, when compared to January 2020 it is indeed lower. However, when compared to February last year, inflation was higher because February 2019 experienced a deflation of 0.08 percent,” said Rusan.

Bank Indonesia’ governor, Perry Warjiyo, targets to controlled the inflation within the target range as a pre-emptive step to maintain the momentum of domestic economic growth amidst the prospects of global economic recovery in connection with the occurrence of COVID-19.

To keep inflation remaining within the target range of 3.0±1 percent, the government and BI agreed to maintaining volatile food inflation in the range of 4.0±1 percent. To reached the target, the parties agreed to strengthening price affordability, supply availability, smooth distribution, and effective communication, especially ahead of the national religious holidays.

Both also aimed to strengthening agricultural institutions, accompanied by capacity building, financing and development of digital agricultural ecosystems, including synchronizing programs and data. Then, support the management of public expectations and strengthening the coordination of the central and regional governments in controlling inflation through the holding of the National Coordination Meeting for Inflation Control in June 2020.

“Inflation will be kept under control within the target corridor of 3.0+1 percent. Meanwhile, the current account deficit (CAD) will be controlled within the manageable threshold of 2.5-3 percent of GDP in 2020, underpinned by a significant capital and financial account surplus, which will support external stability,” the governor revealed.

Written by Staff Editor, Email: theinsiderstories@gmail.com