"We have set the target inflation rate at 4 percent, plus or minus 1 percent, for all of 2015. Yet, the inflation rate has the potential to stay below 3 percent year-on-year," BI Governor Agus Martowardojo said during a press briefing here on Tuesday.
The consumer price index (IHK) in October 2015 recorded a deflation of 0.08 percent month-to-month, bringing the annual inflation rate to 4.25 percent, he said.
"The deflation recorded in the group of volatile foods came together and corrected food stuff prices. So inflation in the January-October 2015 period was recorded at 2.16 percent (year-to-date)," he said.
The deflation was caused by adequate supplies of food commodities, he said.
In addition, core inflation and administered inflation in November is lower than their historical value, he said.
"The core inflation reached 0.23 percent (mtm) or 5.02 percent (yoy) as a result of the rupiahs strengthening, limited domestic demand, and efforts to keep inflation expectations in check," he said.
The inflation caused by administered prices was also low, driven by a drop in diesel oil prices and the persistent impact of an increase in the price of liquefied petroleum gas (LPG) in 12-kg cylinders, he noted.(WDY)
