Seriously! Inflation Will Break Above 4 Percent According To Bank Indonesia

Illustration (Photo: Doc. Antara)

JAKARTA - The Governor of Bank Indonesia (BI) Perry Warjiyo said that the projected amount of inflation this year is expected to exceed 4 percent. This figure is also higher than the government's target in the 2022 State Budget Law which is recorded at 3 percent plus minus 1 percent.

"Indeed, overall, we estimate that inflation may be slightly above 4 percent," he said when giving a press statement to reporters via online channels on Tuesday, May 24.

However, Perry said that overlapping inflation would not increase significantly from the initial target set.

"But this inflation (rise) is not far above 4 percent," he said.

The BI boss explained this assumption based on the government's steps that have taken a number of strategic policies, such as increasing the energy subsidy budget allocation to reduce selling price pressure in the community.

"This is in accordance with the fiscal policy that has been taken by the government and through strengthening the coordination of the TPI (Inflation Control Team) and TPID (Regional Inflation Control Team) as well as the steps taken by Bank Indonesia," he said.

Furthermore, Perry explained that inflation will sag again in the next period in line with the central bank's reading of the macroeconomic situation going forward.

"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.

According to VOI records, earlier this month the Central Statistics Agency (BPS) announced that the inflation rate for April 2022 was 3.47 percent year on year (yoy).

This level is known to have continued to climb from the previous two months with March inflation at 2.64 percent and February at 2.03 percent, respectively.