BPS sees inflation at 5-6%<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The economy is likely to enjoy a much lower inflation this year
\nof around 5-6 percent, according to head of the Central
\nStatistics Agency (BPS) Soedarti Surbakti.<\/p>\n
She told reporters on Tuesday that her office subscribed to
\nthe recent inflation forecast made by the central bank.<\/p>\n
"There is a possibility, especially if there are no extreme
\nsituations, that (5-6 percent) can be reached," she said.<\/p>\n
She explained that her office had already factored in the rise
\nin prices of goods before the Idul Fitri Islamic holiday in
\nNovember, as well as year-end festivities.<\/p>\n
The government had forecast an average inflation rate of 9
\npercent for this year, compared to a double-digit rate of 10.03
\npercent last year.<\/p>\n
The relatively benign inflation environment during the first
\nhalf of this year, however, prompted Bank Indonesia to revise
\ndownward the inflation target to 5-6 percent.<\/p>\n
The relatively low inflation was partly due to the rapid
\nappreciation of the rupiah against the U.S. dollar, which lowered
\nthe prices of imported raw materials and other goods.<\/p>\n
The favorable condition thus allowed the central bank to
\ncontinue to lower its benchmark interest rate and encourage banks
\nto also lower their lending rates, so that loans would be more
\naffordable to the private sector. The lower interest rate would
\nalso help the government in servicing its huge domestic debts.<\/p>\n
The International Monetary Fund and World Bank have praised
\nthe government's achievements in lowering the inflation and
\ninterest rates, stabilizing the rupiah and cutting the state
\nbudget deficit, but they have urged it to press ahead with key
\neconomic reform programs to improve the investment climate here.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bps-sees-inflation-at-5-6-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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