VIVAnews – The central bank Bank Indonesia (BI) predicts the 2009 inflation to reach 3 percent, which is under the inflation target of 4.5 percent.
“BI predicts inflation to be lower than 4 percent,” said BI senior deputy governor Darmin Nasution in Jakarta on Thursday, Nov. 5.
The low inflation rate had triggered BI to maintain the BI rate on 6.5 percent.
BI sees that the inflation in Oct. 2009 records a decrease in terms of price and is lower than the historical pattern. It is supported by the strengthening rupiah exchange rate and lowering public’s expectation on the future inflation, which is reflected by the increasing core inflation.
Meanwhile, the 2010 inflation is predicted to return to its normal pattern in a range of 5± 1 percent along with the improving domestic economic activities and commodities price.
The Central Statistics Agency recorded 0.19 percent inflation in October 2009 with 116.68 on the consumer price index. The inflation rate in January – October 2009 reaches 2.48 percent, meanwhile the year-on-year inflation rate (October 2008 – October 2009) reaches 2.57 percent.
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Translated by: Ariyantri E. Tarman
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