Jakarta: Consumer Price Index (CPI) inflation in 2019 stood at 2.72 percent (yoy), which is within the Bank Indonesia (BI) target corridor for the last five consecutive years, the figure of which in 2019 is 3.5 percent plus minus one percent.
"The positive achievement is closely related to the consistency of Bank Indonesia in maintaining price stability with the support of strong synergy between the policies of Bank Indonesia and the Government in the central and regional levels," BI said in a press release issued on Friday, January 3, 2019.
Going forward, BI remains committed to maintain price stability in order to keep inflation within the range of 3.0 percent plus minus one percent in 2020.
According to the central bank, CPI inflation in 2019 records a decrease compared to that in 2018 standing at 3.13 percent (yoy).
Such condition is influenced by the consistently low core inflation of 3.02 percent (yoy), the consistent policies of BI in maintaining price stability making the expected inflation on target, the properly managed aggregate demands, the exchange rate movement according to its fundamentals, and the positive contribution of minimum global price increase.
Moreover, inflation of volatile food is also controlled at 4.30 percent (yoy), supported by synergy between the policies of BI and the Government resulting in maintained food supply amidst the bad weather in the middle of 2019.
Meanwhile, inflation of administered prices stood low at 0.51 percent (yoy), in line with the least policy on tariffs and prices of goods and services managed by the Government.