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BI predicts February`s inflation below that of years before

25th February 2011 | 1.982 Views
Jakarta (ANTARA News) - Bank Indonesia predicts the rate of inflation in February will be lower than in the same month last years.

"Yes, it seems it will be below the annual average for February. So it year-on-year inflation will be below seven percent," the central bank`s governor, Darmin Nasution, said here on Friday.

The Central Bureau of Statistics (BPS) recorded the year-on-year inflation in January reached 7.02 percent and the year-on-year inflation of main components reached 4.18 percent.

For February the finance ministry predicts the rate will be at the range of 0.3 and 0.5 percent, as the price of rice has dropped ahead of the harvest season.

BPS chief Rusman Heriawan said earlier that the rate of inflation in 2011 could be controlled to be a low level if the rate of inflation in the next three months from February to April is low.

"If the rate of inflation in February, March and April is low we may still have hope," he said.

Rusman said the rate of inflation could be categorized as soft if it reached just between 0.1 and 0.3 percent.

Regarding the core inflation that could make the assumed target of 5.3 percent for 2011 unable to be achieved, Finance Minister Agus Martowardojo said the government would continue to discuss with Bank Indonesia to maintain it not to become too high.

"We must control the inflation and Bank Indonesia will work together with us for it," he said.

He said the government would not interfere in controlling the core inflation which is under the authority of Bank Indonesia but it must be controlled.

"It must be put below 4.2 percent but the exact figures still have yet to be discussed further with BI. I would not say in advance because for achieving a 5.2 percent the area is very slim," he said.(*)