Inflation in October slowed to 6.22%<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Prices rose at a slower rate in October mainly because of an
\nabundant supply of rice that helped ease inflationary pressures
\ncaused by the soaring oil price and weaker rupiah.<\/p>\n
The Central Statistics Agency (BPS) reported on Monday that
\nthe annualized inflation rate in October declined slightly to
\n6.22 percent, from 6.27 percent in September, and that year-on-
\nyear inflation has been on a declining trend over the past three
\nmonths.<\/p>\n
Inflation had been expected to accelerate to 6.4 percent last
\nmonth, a median forecast of nine economists surveyed by Bloomberg
\nshowed.<\/p>\n
However, inflation in the coming months may rise again as
\ndemand for goods and services increase during Idul Fitri and the
\nyear-end festivities, and some economists are concerned that the
\ncountry might pass its full-year inflation target of 7 percent.<\/p>\n
Central bank officials have played down the concern, and said
\nrecently it was optimistic that inflation this year would be less
\nthan 7 percent on the back of the rice harvest and because of the
\ndollar's weaker global trend, which would keep down costs for
\nimported raw materials.<\/p>\n
Meanwhile, the high global price of oil is deemed to have a
\nlimited impact on the prices of local goods, as the government
\nhas provided a fuel subsidy for the transportation sector.<\/p>\n
Some government officials recently said the new administration
\nwould not raise domestic fuel prices until the end of the year.<\/p>\n
Bank Indonesia has maintained a relatively stable benchmark
\ninterest rate at around 7.41 percent, largely due to the mild
\ninflation.<\/p>\n
Keeping a mild inflationary environment is vital to the
\ncentral bank's maintaining a low interest rate, which would in
\nturn help accelerate economic growth.<\/p>\n
Elsewhere, the BPS said month-on-month inflation in October
\nincreased by 0.56 percent from the previous month.<\/p>\n
\"All prices were up in October,\" BPS chief Choiril Maksum
\nsaid.<\/p>\n
The cost of basic foods rose 1.31 percent, while processed
\nfoods were up 0.29 percent and clothing rose by 0.59 percent.<\/p>\n
In addition, the cost of education increased by 1.27 percent,
\nhealth by 0.13 percent and real estate by 0.29 percent.<\/p>\n
The Agency also said a rise in local telephone charges and
\nhigh crude oil prices throughout the month pushed up the cost of
\ntelecommunications and transportation by 0.04 percent.<\/p>",
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"sponsor": "Okusi Associates",
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