Inflation in November up 1.01%, but still on track for year<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
Consumer price index rose in November by 1.01 percent from the
\nprevious month, bringing the cumulative inflation in the first 11
\nmonths to 4.08 percent, strengthening hopes that full-year
\ninflation will be lower than the initial government forecast of 6
\npercent to 7 percent.<\/p>\n
Chairperson of the Central Statistics Agency (BPS) Sudarti
\nSoerbakti said that although the November inflation rate was
\nquite high, the bureau was optimistic that full-year inflation
\nwould be below 6 percent.<\/p>\n
"We forecast that full-year inflation will be below 6 percent
\nbecause, based on our previous data, inflation in December is
\nusually lower compared to other months," she said in a press
\nbriefing on Monday.<\/p>\n
Sudarti explained that after spending heavily ahead of the
\nIslamic Idul Fitri holiday, which fell on Nov. 25 and Nov. 26,
\npeople generally restrain from making a lot of purchases in
\nDecember.<\/p>\n
"The (inflation) rise in November has a lot to do with the
\nrise in all basic food prices and clothing, mostly due to higher
\ndemand during the fasting month of Ramadhan and Idul Fitri," she
\nsaid.<\/p>\n
Even if prices are on the rise ahead of Christmas and New Year
\nfestivals, they would not increase to such an extent that annual
\ninflation will top the government's full-year inflation target of
\nbetween 6 percent to 7 percent, she said.<\/p>\n
Based on the BPS report, the commodities and services which
\ncontributed to inflation in November included basic food, with an
\nincrease in prices of 2.24 percent in the month; clothing, 2.29
\npercent; transportation and communications, 1.06 percent;
\nhousing, 0.42 percent; processed food, beverages and cigarettes,
\n0.32 percent; health care products and services, 0.16 percent;
\nand education, recreation and sports, 0.03 percent.<\/p>\n
On-year inflation rose by 5.33 percent in November as against
\n10.48 percent in the same month last year, BPS added.<\/p>\n
A mild inflation would do little damage to people's purchasing
\npower, which bodes well for efforts to maintain strong domestic
\nconsumption, the country's main economic growth engine.<\/p>\n
After posting double digit inflation figures last year,
\nIndonesia has been enjoying a relatively modest rate of inflation
\nthanks in part to a stable rupiah, which has helped prices of
\nimported consumer goods remain stable as well.<\/p>\n
The mild inflation should also pave the way for Bank Indonesia
\nto further slash its benchmark interest rate and eventually push
\nbanks to extend cheaper loans to the corporate sector.<\/p>",
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