Bank Indonesia Ramal Inflation Can Slope Up To 2.9 Percent At The End Of The Year

Illustration (Photo: Doc. Antara)

JAKARTA Bank Indonesia (BI) is optimistic that the inflation rate in the future will be more under control. This is reflected in the general inflation rate (consumer price index / IHK) which is now 3.08 percent year on year (yoy) in July 2023.

The score has been included in this year's target of 3 percent plus minus 1 percent.

BI Governor Perry Warjiyo said the decline in inflation in Indonesia was faster than previously thought.

In fact, he predicts that by the end of the year the level to be achieved can be more gentle.

"We estimate that by the end of this year IHK inflation could be around 2.9 percent and core inflation could be 2.5 percent," he said during a press conference after the Board of Governors Meeting, Thursday, August 24.

Perry noted that inflation in July 2023 fell to 2.43 percent, from inflation in the previous month of 2.58 percent which was in line with managed demand, maintained inflation expectations, and low imported inflation.

"Then, the volatile food group even deflation was 0.03 percent, from inflation the previous month of 1.20 percent driven by the success of the National Movement for Inflation Control in various regions," he said.

Furthermore, the administrative price group inflation also continued to decline to 8.42 percent, from the previous month's development of 9.21 percent.

Perry said that the low inflation was a tangible result of the consistency of monetary policy and the close synergy of inflation control between Bank Indonesia and the Government (Center and Regions) in TPIP and TPID.

"With these developments, Bank Indonesia believes inflation will remain under control in the range of 3 percent plus minus 1 percent in the remainder of 2023 and 2.5 percent plus minus 1 percent in 2024," concluded Perry.