So far supply of essential goods has not been affected by the eruption of Mount Kelud."Jakarta (ANTARA News) - Bank Indonesia predicted the countrys inflation in February would be less than 0.6 percent (month on month), as against 1.07 percent in January.
Based on our observation, there was much less price pressure in February that we think inflation would be less than 0.6 percent this month," Deputy Governor of BI Perry Warjiyo said here on Friday.
Mount Kelud disaster in East Java had no much effect yet on the prices, Perry said referring to eruption on Thursday night of the volcano spewing volcanic materials.
Volcanic ashes have disrupted flights including from Jakarta to eastern part of Java as well as from Bali to western parts of the country . School and government office were closed in a number of cities in East Java and Central Java such as Solo and Yogyakarta.
"So far supply of essential goods has not been affected by the eruption of Mount Kelud," Perry said.
Disturbances to distribution of food has been caused more by rain triggered flooding in various areas in the country, he said.
Flooding and volcanic eruptions had come almost at the same time leaving a scene of disasters in the country over the past several months .
"Semarang, Tegal, Pekalongan and Cirebon had been beset by flooding causing extensive damage to farmlands and crop," he said.
He said in 2014, inflation is predicted to be around 4.9 percent on year considering an increase in electricity tariff and liquified petroleum gas (LPG) price, impact of elections and Idul Fitri.
(Uu.H-ASG/A014)
Editor: Priyambodo RH
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