Bank Indonesia predicts March inflation of 0.10%

MACROECONOMICS - JAKARTA. Bank Indonesia (BI) projects Indonesia's inflation rate in March 2019 at 0.10% month to month and 2.47% year on year. Estimate this based on the price monitoring survey until the third week of March 2019.

"So inflation remains low and decreases. January 2.8% and February 2.57%," said BI Governor Perry Warjiyo, Friday (3/22).

Perry said low inflation in March was due to low prices of various commodities. He admitted there were still increases in several items such as shallots, garlic, air freight, cayenne pepper, and bottled water. "But the increase is not large," Perry said.

But there is also a deflation of some items such as chicken meat, eggs, vegetables, and rice.

According to Perry, in addition to showing low prices under control, this deflation also indicates that food needs are still being met. Looking at inflation developments until March 2019 which remain low, BI optimistic that inflation by the end of the year could be below 3.5%.