Government Begins To Be Realistic, Inflation Believed To Pass Up To 4.5 Percent

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Minister of Finance (Menkeu) Sri Mulyani stated that this year's inflation rate will actually exceed the target of 3 percent plus minus 1 percent in line with price developments that continue to creep up.

According to the Minister of Finance, there is a potential that the inflation rate will be higher accompanied by weaker growth.

"With various considerations, it is estimated that inflation will be in the range of 3.5 percent to 4.5 percent this year," he said when giving a presentation to the media crew through a virtual channel, Wednesday, July 27.

The Minister of Finance added that the government will continue to be aware of the various risks that occur, especially inflation from developed countries.

Sri Mulyani said that in developed countries, inflation would be at the level of 6.6 percent or an increase of 0.9 percent.

Meanwhile in developing countries, the inflation rate is estimated to reach 9.5 percent, up 0.8 percent from the previous projection.

"This combination is not very good for the global economic environment which we must also be aware of could affect Indonesia," he said.

In the previous VOI report, Bank Indonesia had even predicted higher inflation, stating that this year it would reach 4.6 percent.

“Indeed, the CPI (consumer price index) will rise. By the end of this year, it could reach 4.5 percent to 4.6 percent," said BI Governor Perry Warjiyo some time ago.

Meanwhile, the Central Statistics Agency (BPS) report on July 1 revealed that Indonesia experienced inflation of 4.35 percent on an annual basis or year on year (yoy) in June 2022.