Food Prices Rise, BI Pede Inflation At The End Of The Year Candidates At 3 Percent

Governor of Bank Indonesia Perry Warjiyo. (Photo: Doc. ANTARA)

JAKARTA - Bank Indonesia (BI) Governor Perry Warjiyo said food prices at the end of the year would increase.

However, he believes inflation remains under control at 3 percent.

He believes that year-end inflation is under control because the government continues to carry out food inflation control movements.

"Then related to inflation, we still believe that inflation will remain under control. Our estimate at the end of this year is around 3 percent. Usually at the end of the year food prices will increase, but why is the national movement of food inflation being intensified," he said in a press conference, quoted from the Financial Services Authority's YouTube, Friday, November 3.

In addition, he continued, the government has prepared a number of incentives for people affected by the increase in food prices.

"Earlier, the Minister (Sri Mulyani) provided incentives and supplies for rice distribution were more than sufficient," he said.

Perry targets that inflation next year will remain under control and at 2.8 percent.

Even so, Perry admitted that the government is still wary of a number of risks that will occur in the future.

"In 2024 our target is 2.5 plus minus 1 percent. Next year's inflation is not more than 3.5 percent. Our estimate is 2.8 percent," he said.

Previously, it was reported that the Financial System Stability Committee (KSSK) was optimistic that inflation would remain under control in the range of 3 percent plus minus 1 percent in 2023, even in the midst of a global economy full of challenges and dynamics in the global financial market.

Minister of Finance Sri Mulyani Indrawati said that the Inflation of the Consumer Price Index (IHK) in October 2023 was recorded as low at only 2.56 percent year on year (yoy) supported by core inflation and administered prices groups that were maintained, amid the increase in volatile food group inflation as a result of rising rice prices.

"The maintained inflation is a tangible result of the consistency of monetary policy to ensure inflation remains within the target range," he said at a press conference, Friday, November 3.