JAKARTA (TheInsiderStories) – Governor of Bank Indonesia (BI), Perry Warjiyo, sees the inflation in April lowers than previous month caused the deflationary in some commodities. In March the inflation rate stood at 0.10 percent and in annual basis at 2.96 percent
“We expect inflation to be 0.13 person month to month and year on year 3 percent. A number of deflationary commodities, but there are those that encourage inflation like jewelry, red onion and others,” he told media on Thursday (04/09).
Last month, head of Statistic Indonesia, Suhariyanto stated, the inflation occurred in 43 cities and deflation in 47 cities. The highest inflation occurred in Lhokseumawe, Aceh, triggered by rising fish prices stood at 0.64 percent.
He also noted that there was deflation in Timika, West Papua, minus 1.91 percent, which was triggered by a reduction in air freight rates throughout March. He noted, “The highest deflation in Timikia is minus 1.91 percent due to the decline in air transport tickets.”
Warjiyo said, the central bank target to controlled the inflation within the target range, safe external stability, and 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.
He adds, the monetary operations strategy continues to maintaining adequate liquidity and supporting the transmission of an accommodative policy mix. Beside, accommodative macro-prudential policies were taken to encourage economic financing in line with the sub-optimal financial cycle while still observing the precautionary principle.
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.
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