GNPIP Holds in Central Sulawesi, Bank Indonesia Estimates October Inflation at 5.8 Percent Level

Deputy Governor of Bank Indonesia, Dody Budi Waluyo. (Photo: Doc. Antara)

JAKARTA - Bank Indonesia Deputy Governor, Dody Budi Waluyo, said that based on the latest survey conducted by Bank Indonesia, inflation in October 2022 will reach 5.8 percent on an annual basis.

"Our latest survey shows that in October, which will soon close, inflation only slightly decreased to 5.8 percent on an annual basis", he said during the Central Sulawesi Food Inflation Control National Movement (GNPIP), which was monitored, quoted by Antara, Monday, October 31.

Inflation in October 2022 is estimated to be slightly lower than inflation in September 2022 which reached 5.95 percent on an annual basis.

Every month, Bank Indonesia estimates that inflation will reach 0.05 percent, contributed by a 0.06 percent increase in gasoline prices and a 0.04 percent increase in urban transportation fares.

Dody said that Bank Indonesia made efforts to control inflation from both the supply and demand sides by deploying GNPIP in various regions and increasing the benchmark interest rate.

Bank Indonesia increased the benchmark BI 7 Days Reverse Repo Rate to 4.75 percent because it saw the potential for an increase in public demand.

“What we fear is that this will shape inflation expectations, which are formed by the community. It can be dangerous if it is not handled quickly", he said.

He gave an example of inflation in foodstuffs, such as chilies, which should only last temporarily because the decline in supply could continue and affect inflation expectations.

“So we have measured the increase in the benchmark interest rate, and not applied it to overcome inflation, which should not be overcome by increasing interest rates. We also ensure that our economy will continue to grow", he said.