Indonesia’s consumer consumption index (CPI) was in good control in July. (Photo: gbgindonesia.com)Jakarta (VNA) – Indonesia’s consumer consumption index (CPI) was ingood control in July, according to the Bank Indonesia (BI)’s Executive Directorfor Communications Augusman.
Last month’s CPI stood at 0.28 percent as compared to the figure of 0.59percent in June. BI attributed the result to the declining demands for goodsafter the Islamic holiday of Idul Fitri.
The level is in line with the average figure recorded in recent four years,which stood around 0.27 percent.
The central bank is continuing to work tirelessly with the Government tocontrol inflation rate to keep it at a low and stable level.
Core inflation in July was controlled despite rising prices of services. Therate accelerated from 0.24 percent to 0.41 percent due to a surge in mobilephone tariffs and tuition fees.
Controlled core inflation was inextricably linked to policy consistency byterms of forming and anchoring rational inflation expectations, includingrupiah stabilisation strategy in line with the currency fundamental value.
BI forecast the inflation rate will be within the target range for 2018, ataround 3.5 percent.
The World Bank earlier predicted Indonesia’s economic growth to reach 5.3 percentthis year, lower than the country’s set target of 5.4 percent.
Derek Chen, a World Bank Senior Economist, said that Indonesia’s economicgrowth will be driven by investment, households’ spending, and impacts of thegeneral elections of administrative heads which will be held across the nationthis year.-VNA
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