Inflation to be close to 3.5 percent this year: BI

Jakarta (ANTARA News) - Indonesias inflation rate is most likely to come close to 3.5 percent this year if the prices of goods can be controlled in the remaining three months, Bank Indonesia (BI) Deputy Senior Governor Mirza Adityaswara predicted.

"With three more months left in 2017, say, if the year-to-date inflation is 2.7 percent, then the inflation rate may stay below 4 percent or even come close to 3.5 percent year-on-year (yoy)," he stated after, attending a national meeting of the Indonesian Chamber of Commerce and Industry (Kadin) here, on Tuesday.

The inflation, which stays at the central banks lower target range, can be achieved if the prices of goods can be controlled properly, he noted.

But he refused to divulge the year-end inflation forecast.

"The inflation is very likely to come close to 3.5 percent. But BI still sticks to its target of 3.7-3.8 percent yoy," he explained.

Asked about the September inflation of 0.13 percent, higher than BIs deflation forecast of 0.01 percent, he remarked that it is the result of pressure on the prices of rice and several chili variants.

"But on a monthly basis, the difference is not too large," he added.

BI has set a target of the countrys inflation rate for this year at a range of 3-5 yoy.

According to BI, inflationary pressure eased in the middle of this year, allowing for the inflation to return to less than 4 percent, or the lower limit of inflation target.

Indonesias inflation reached 3.02 percent yoy last year. BI has predicted the inflation to increase to 3.5, plus and minus 1, percent next year.

Source: ANTARA News

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