Inflation down to 0.5% last month

Inflation down to 0.5% last month

JAKARTA (JP): The inflation rate dropped to 0.5 percent in March from 1.31 percent in February and 1.16 percent in January, the Ministry of Finance announced yesterday.

The ministry said in a statement that the inflation in March was caused by an increase of 1.7 percent in food prices, 0.34 percent in clothing prices and 0.04 percent in the prices of services, while housing prices dropped by 0.02 percent.

During the January-March period, the inflation rate was recorded at 3.04 percent, as compared to 3.71 in the same period of last year.

The inflation rate in the 1994-95 fiscal year, which ended last month, was checked at 8.57 percent, far higher than 7.04 percent in the previous fiscal year.

The inflation rate in the calender year of 1994 was checked at 9.24 percent, slightly lower than 9.77 percent in 1993. The inflation rate was recorded at 9.53 percent in both 1990 and 1991 before falling to 4.53 percent in 1992.

The government, concerned over the high inflation rate in the past years, has pledged to make concerted efforts to curb the inflation rate at a maximum of five percent in each of the coming years in order to improve the competitiveness of Indonesia's exports.

Minister of Finance Mar'ie Muhammad told the House of Representatives recently that the government would maintain its cautious monetary policies to keep the inflation rate low.(hen)