Jakarta: Bank Indonesia (BI) has projected that inflation would reach 0.35 percent month-to-month (mtm) and 2.74 percent year-on-year (yoy) in April 2019.
"According to our survey, as of the fourth week of April 2019, inflation is predicted to reach 0.35 percent (mtm) and 2.74 percent (yoy)," BI Governor Perry Warjiyo said here on Friday.
Central Statistics Agency (BPS) head Suhariyanto recently announced inflation reached 0.11 percent month-to-month (mtm) and 2.48 percent year-on-year (yoy) in March 2019. The official explained that last month's inflation was mainly influenced by rising air fares.
Administered prices (AP) inflation was recorded at 0.08 percent (mtm) in March 2019, up slightly from 0.06 percent (mtm) the month earlier. Annually, administered prices recorded 3.25 percent (yoy) inflation in the reporting period, falling from 3.38 percent (yoy) in the previous period.
Core inflation slowed from 0.26 percent (mtm) in February 2019 to 0.06 percent (mtm) in March 2019. Annually, core inflation stood at 3.03 percent (yoy), down slightly from 3.06 percent (yoy) the month earlier.
Volatile foods (VF) recorded 0.02 percent (mtm) deflation in the reporting period, reversing the 1.3 percent (mtm) inflation posted the month earlier. Annually, VF inflation stood at 0.16 percent (yoy), down from 0.33 percent (yoy) the month earlier.
The Bank Indonesia (BI) Board of Governors agreed to hold the BI 7-Day Reverse Repo Rate at 6.00% this month. It also decided to maintain the Deposit Facility (DF) and Lending Facility (LF) rates at 5.25% and 6.75% respectively.
"The trend of lower inflation over the past few years, including controlled price pressures on volatile foods, has successfully maintained public purchasing power, especially amongst low-income earners," the central bank said in a press release on Thursday.
Moving forward, BI is ready to maintain price stability and strengthen policy coordination with the Central and Regional Government in order to control low and stable inflation within the target range, namely 3.5%±1% in 2019.
Furthermore, BI will continue to coordinate intensively with the Government and other relevant authorities to control inflation during the holy fasting month of Ramadan and Eid-al-Fitr 1440.