Wednesday, March 5, 2014

Inflation trend in 2014 is Declining

Compared to inflation of 1.07 % in January, inflation in February this year at 0.26 % is much more restrained. Bank of Indonesia (BI) judged that inflation was on a downward trend, where in February 2014 is quite low at 0.26 % in the month or (month to month/mtm) or 7.75% in a year (year on year/ yoy).

Executive Director of Communications Bank, Tirta Segara said, inflation fell in January 2014 compared to inflation of 1.07 % (mtm) or 8.22% (yoy). "This development is influenced by a range of central government and regional policy in minimizing the impact of natural disasters continued so volatile food inflation was recorded in February 2014 is quite low, " he said in Jakarta, Monday, March 3, 2014 .

Volatile components of inflation stood at 0.32 % (mtm) or 9.85 % (yoy), down sharply compared with the previous month's inflation of 2.89 %, or 11.91 % .

According to Tirta, lower inflation is also influenced by the exchange rate controlled so as to minimize the impact of rising global commodity prices to core inflation recorded in February 2014 at 0.37 % (mtm) or 4.57 % (yoy), down from the core inflation January 2014 .

In addition, inflation is also low administered prices ie 0.01 % (mtm) or 17.37 % (yoy), mainly influenced by the price correction Household Fuel (LPG 12 kg) newly recorded in February 2014 .

"Bank of Indonesia believes that inflation until February 2014 are still in the trajectory of the inflation target, although it will continue to look at the risks that may interfere with the achievement of the target of 4.5 +1 % in 2014 and 4.0 +1 % in 2015, " added Tirta .

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