BI Strengthens Policy Coordination to Control Inflation

Jakarta, InfoPublik - Bank Indonesia has consistently maintained price stability and strengthened policy coordination with the Government, both at the central and regional levels, to ensure that inflation is under control.

Inflation in 2019 is predicted to be below the midpoint of the target range of 3.5 ± 1% and maintained within the target range of 3.0 ± 1% by 2020. Meanwhile, in August 2019, inflation remained under control at a low and stable level.

CPI inflation in August 2019 was recorded at 0.12% (mtm), down from the previous month's inflation at 0.31% (mtm), as stated by BI’s Department of Communication executive Director Onny Widjanarko in a press release received in Jakarta, Sunday (29/9).

Onny added, on an annual basis, inflation in August 2019 was recorded at 3.49% (yoy), a slight increase compared to the previous month's inflation of 3.32% (yoy).

"Controlled inflation is supported by maintained core inflation supported by good inflation expectations following Bank Indonesia's policy consistency in maintaining price stability, well-managed aggregate demand, and minimal influence of global prices," said Onny.

According to him, the increase in core inflation in the last few months was more influenced by the increase in global gold prices and the continued impact of volatile food inflation which had increased. Recent developments indicate that volatile food inflation has slowed, in line with the maintained supply of food.
Meanwhile, the administered prices group recorded another deflation resulted by lower transportation fares, especially air transportation due to the implementation of the airline strategy during the low season. (Reporter: Isma, Translator: Penni Patmawati Rusman)