High Inflation In August Due To Idul Fitr Holidays

Jakarta (Antara Bali) - Finance Minister Agus Martowardojo said the high inflation of 0.95 percent in August was caused by commodity price increases during the Id-ul Fitr holidays.

"This is beyond expectation. We have earlier predicted at between 0.6 to 08. percent. This is because of the fasting month of Ramadan factor,the finance minister said here on Monday.

He said that the August inflation rate has caused the year-on-year inflation rate to reach 4.58 percent which  constitute a figure still within the government's prediction.

"In general, if the figure is still less than five percent it means that it is still in a condition which is desired by the government," the finance minister said.

In an effort to control the inflation rate in the coming several months, the Indonesian government and Bank Indonesia, or the central bank, would do its best to keep the inflation rate under a controllable level, particularly the core inflation.

"All sides will do coordination. Such as what was done by the central bank yesterday. This needs to be followed up so that ministries and relevant institutions would respond to it to prevent core inflation," the finance minister said.(*/T007)