Indonesia`s inflation predicted to be low in April
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Bank Indonesia predicted that the countrys inflation would not be too high this month with falling prices of foodstuffs amid harvest time .
“The inflation in April is expected to be not too high as a result of the harvest time,” head of the Monetary Economic Policy Department of the central bank Dody Budi Waluyo said.
The administered prices might increase as a result of the governments plan to raise the electricity tariff in June this year, but falling prices of foodstuffs would keep the inflation low, Dody said here on Thursday.
Last month, the country had a deflation of 0.02 percent as said by the Central Bureau of Statistics (BPS). BPS said the deflation was also attributable to falling prices of a number of foodstuffs like rice, red chili, garlic, eggs and fresh fishes.
“The significant decline in the prices of a number of main foodstuffs resulted in the deflation in March,” BPS said.
Questions & Answers
Q.What is the primary reason Bank Indonesia expects low inflation in April?
What is the primary reason Bank Indonesia expects low inflation in April?
Bank Indonesia predicts low inflation because of falling foodstuff prices. This decline is attributed to the current harvest season, which increases supply and consequently lowers costs for consumers.
Q.Which specific goods contributed to the deflation observed last month?
Which specific goods contributed to the deflation observed last month?
Last month's deflation was significantly influenced by price drops in several key foodstuffs. These included staple items such as rice, red chili, garlic, eggs, and fresh fish, according to the Central Bureau of Statistics.
Q.Could there be any upward pressure on prices in the near future?
Could there be any upward pressure on prices in the near future?
Yes, there is potential for administered prices to rise. This could occur due to the government's plans to increase the electricity tariff, which is scheduled to take effect in June this year.
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