BI predicts lower inflation rate in September

JAKARTA. Bank Indonesia (BI) governor Agus Martowardojo has predicted that the national inflation rate in September would stand at 0.06 percent, which is lower than in August.

“In the third week, if there is no any change [in the country’s economic situation], we will see an inflation rate in September of 0.06 percent,” he said as quoted by Antara news agency on Tuesday.

Agus said that such a low inflation rate was a result of volatile food and administered prices being relatively flat and not triggering fluctuations, although prices of several commodities still needed to be closely monitored.

“Pressures on volatile food and administered prices have declined, but we still have to pay close attention to rice prices,” he said.

Agus said the national inflation rate at the end of this year would still be 4 percent plus-or-minus 1 percent, as projected by BI, although year-on-year it would stand at 6.95 percent in September.

The Central Statistics Agency (BPS) recorded an inflation rate of 0.39 percent in August, which was assisted mainly by the education and staple-food sectors.

As August’s inflation rate stood at 0.39 percent, the calendar year inflation for January-August is now 2.29 percent while year-on-year inflation is 7.18 percent.