JAKARTA -The survey of Bank Indonesia (BI) projects inflation rate to reach by 0.2% in August 2019 month-to-month (mtm), or 3.52% year-on-year (yoy). The inflation rate was higher than the realization in July 2019, which was 3.32% yoy. The increase in inflation was due to an increase in chili prices.
BI Governor Perry Warjiyo said the high price of red chili is still the main trigger for inflation this month. "The price of red chili contributes more than half of inflation (on a monthly basis) to 0.15%," said he, at the BI complex, on Friday (23/8).
In addition, several other commodities also contributed to the inflation, including gold jewelry by 0.07%, cayenne pepper by 0.05%, and PDAM drinking water by 0.01%.
Meanwhile, commodities contribution to deflation in August are estimated to have air transport rates by 0.09%, shallots by 0.06%, and several other types of vegetables.
Warjiyo said, the increase in red chili price that triggered inflation was temporary due to the effect of the long summer season. While the increase of red chili price in some areas, North Sumatra, for example, it is because of a lot of crops that being sent to the other areas, which makes prices in the region relatively high.
Warjiyo is optimistic that inflation will remain under control until the end of the year in accordance with the government's target at under 3.5%. (AM/W)