August Inflation To Reach 0.3 Percent: BI Survey

Jakarta (Antara Bali) - The result of a survey conducted by Bank Indonesia (BI) showed that the monthly inflation rate in the country reached 0.3 percent at the end of the fourth week of August.

This is lower than the average inflation rate during August over the past five years.

"Based on the survey conducted during the fourth week of August, the inflation rate stood at 0.3 percent. If it turned out to be true, our IHK (consumer price index) will be 7.08 percent year-on-year," Bank Indonesia Governor, Agus Martowardojo, said at his office here on Friday.

On an annual basis, the August 2015 inflation rate had fallen to 7.08 percent from 7.26 percent a month earlier. This meant that it had shown good performance, he said.

"We have been following it together. Low inflation is one of the important indicators," he said.

After all, the country must stay alert for inflationary pressure from commodities, such as chicken, chicken eggs, beef and rice, he said.

The decline in inter-regional transport fares and onion prices had contributed to deflation, he said.

"Of course, we will see the government paying attention to the commodities," he said.

The central bank believes the inflation rate for all of 2015 will reach its target of 4, plus or minus 1 percent. (WDY)