ID :
68319
Mon, 06/29/2009 - 19:44
Auther :
Shortlink :
https://www.oananews.org//node/68319
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JUNE INFLATION MAY FALL BELOW 4 PCT: BI OFFICIAL
Jakarta, June 29 (ANTARA) - Indonesia's annual inflation may fall below 4.0 percent in June as no significant rise in price commodities was recorded, a senior central bank official said.
"The y-o-y inflation may fall below 4 percent," Deputy Bank Indonesia (BI) Governor Hartadi A. Sarwono said on the sidelines of a working meeting with the House of Representatives' Commission XI overseeing finance, national development planning, banking industry and non-bank financial institutions here on Monday.
Asked about the impact of the June 2009 inflation on the benchmark interest rate, locally known as BI Rate, he said the central bank still had to evaluate all other economic components.
"BI Rate will not be decided by the June 2009 inflation only. There is still a room for it to fall thanks to low inflationary pressure," he said.
BI Rate was cut by 25 basis points to 7.00 percent early this month. Since December 2008 Bank Indonesia has cut the rate by 2.50 percentage points in a bid to help spur economic growth.
The Central Statistics Board (BPS) said earlier on-month inflation in May stood at 0.04 percent, bringing the year-on-year inflation to 6.04 percent and the calendar year inflation to 0.10 percent.
The low inflation in May 2009 was mainly helped by lower food prices and the rupiah's appreciation against the US greenback.
The board said the country recorded a deflation of 0.31 percent in April 2009, bringing the year-on-year inflation to 7.31 percent and the calendar year inflation to 0.05 percent.
In March 2009 monthly inflation stood at 0.36 percent with the year-on-year inflation reaching 7.29 percent and the calendar year inflation 0.05 percent.
"The y-o-y inflation may fall below 4 percent," Deputy Bank Indonesia (BI) Governor Hartadi A. Sarwono said on the sidelines of a working meeting with the House of Representatives' Commission XI overseeing finance, national development planning, banking industry and non-bank financial institutions here on Monday.
Asked about the impact of the June 2009 inflation on the benchmark interest rate, locally known as BI Rate, he said the central bank still had to evaluate all other economic components.
"BI Rate will not be decided by the June 2009 inflation only. There is still a room for it to fall thanks to low inflationary pressure," he said.
BI Rate was cut by 25 basis points to 7.00 percent early this month. Since December 2008 Bank Indonesia has cut the rate by 2.50 percentage points in a bid to help spur economic growth.
The Central Statistics Board (BPS) said earlier on-month inflation in May stood at 0.04 percent, bringing the year-on-year inflation to 6.04 percent and the calendar year inflation to 0.10 percent.
The low inflation in May 2009 was mainly helped by lower food prices and the rupiah's appreciation against the US greenback.
The board said the country recorded a deflation of 0.31 percent in April 2009, bringing the year-on-year inflation to 7.31 percent and the calendar year inflation to 0.05 percent.
In March 2009 monthly inflation stood at 0.36 percent with the year-on-year inflation reaching 7.29 percent and the calendar year inflation 0.05 percent.
