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BI predicts June inflation of 0.56%, lower than previous estimate
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A vendor arranges her goods at Ciputat Market in South Tangerang. (ANTARA FOTO/Teresia May)
The Indonesian central bank predicts June inflation will reach 0.56 percent, lower than a previous estimation of 0.6 percent.
The decrease was caused by some food commodities experiencing deflation, although many others are experiencing inflation amid increasing demand during Ramadhan.
Bank Indonesia (BI) Governor Agus Martowardojo said the central bank saw Indonesia's economy as generally in good condition with inflation under control until the third week of June.
"We predict June inflation of 0.56 percent. But we will keep an eye on it because there are 10 days remaining ahead of Idul Fitri," he said in Jakarta on Friday.
As of the third week of June, Agus continued, volatile foods would still have a major effect on inflation. Prices of staple foods such as chicken and eggs are still rising.
In addition, there are three commodities that will likely contribute to inflation: rice, sugar and chilies. "Yet, onions are likely to deflate, so we predict monthly inflation of 0.56 percent," he added. (ags)
