Analysts forecast Inflation tipped to stay high
Inflation was expected to come in at a similar rate to January’s level of 7.4%, according to a range of analysts, with prices only expected to start falling again in March with the major rice harvest.
A survey of analysts by Bloomberg said rising prices of cooking oil, soybeans and other basic foods are likely to prevent Bank Indonesia from further cutting its benchmark rate.
“We expect the policy rate to stay at 8% for the whole year,” said Helmi Arman, an economist with PT Bahana Securities. “The surge in soft commodity prices continues and this will eventually pass through to the food component.”
The government last month trimmed this year's growth forecast to 6.4% from 6.8%.
The trade surplus is expected to have shrunk last month as exports fell amid slower demand from major markets like the United States while rising prices of crude oil and other commodities lifted imports, economists quoted by Thomson Financial said.
Economists polled by the agency said the country's trade surplus probably fell to between $2.52 billion and $3.78 billion in January from $4.06 billion in the previous month.
'The global slowdown would affect demand for Indonesian goods. But with commodity prices still high, the value of Indonesia's exports remain supported,' said Gundy Cahydai, an economist at Ideaglobal Ltd.
A survey of analysts by Bloomberg said rising prices of cooking oil, soybeans and other basic foods are likely to prevent Bank Indonesia from further cutting its benchmark rate.
“We expect the policy rate to stay at 8% for the whole year,” said Helmi Arman, an economist with PT Bahana Securities. “The surge in soft commodity prices continues and this will eventually pass through to the food component.”
The government last month trimmed this year's growth forecast to 6.4% from 6.8%.
The trade surplus is expected to have shrunk last month as exports fell amid slower demand from major markets like the United States while rising prices of crude oil and other commodities lifted imports, economists quoted by Thomson Financial said.
Economists polled by the agency said the country's trade surplus probably fell to between $2.52 billion and $3.78 billion in January from $4.06 billion in the previous month.
'The global slowdown would affect demand for Indonesian goods. But with commodity prices still high, the value of Indonesia's exports remain supported,' said Gundy Cahydai, an economist at Ideaglobal Ltd.