Good News From Bank Indonesia, Inflation Will Slope In Three Months

JAKARTA - Bank Indonesia said that the upward trend in inflation that has occurred since the beginning of 2022 is expected to slow down in the next three months at the latest. This was conveyed by the Head of the BI Communications Department Erwin Haryono in a press statement today.

"(The results of a Bank Indonesia survey revealed) Respondents estimate that inflationary pressures in August and November 2022 (3 and 6 months to come) will decline," he said, Monday, July 11.

Erwin also explained that the General Price Expectation Index (IEH) in August and November was recorded at 127.5 and 132.1, respectively, or decreased compared to 141.7 and 137.5 in the previous month.

"Some respondents stated that the decline was caused by the smoother distribution of goods," he said.

For information, the rate of increase in inflation has occurred since February 2022 to 2.03 percent. One month later in March 2022 inflation crept up to 2.64 percent, April by 3.47 percent, May 3.55 percent, then to 4.35 percent in June.

To note, last month's inflation score has exceeded the target set by the government and Bank Indonesia of 3 percent plus minus 1 percent.

VOI noted that the prediction of "broken" inflation was predicted by the Governor of Bank Indonesia Perry Warjiyo some time ago before the Central Statistics Agency (BPS) officially announced it.

"Indeed, overall, we estimate that inflation may be slightly above 4 percent," Perry said last Tuesday, May 24.

However, he is optimistic that inflation will return to normal levels next year.

"We believe that for 2023 inflation will return to the recommended 3 percent plus minus 1 percent. In other words, no more than 4 percent and will come back below 4 percent," he said.