Xinhua, Jakarta :
Indonesia’s consumer price index accelerated at the slowest pace in five years in July as the government could control prices which regularly rise during fasting month and prior to the Islamic festivity.
The national statistic bureau announced on Monday that annual inflation eases to 3.21 percent in July compared with adjusted 3.45 percent in June.
On month, July’s inflation reached 0.69 percent, rising from 0. 66 percent in June, said Suryamin, head of the bureau.
“Unprocessed food prices still contributed, the highest, to the inflation. It is because of the impact of fasting month of Ramadhan and the Islamic festivity,” he told a press conference at the bureau.
Muslims in Indonesia, the world’s largest Muslim country, celebrated Eid al-Fitr on July 6 and July 7 after performing one-month fasting.
Annual core inflation, excluding volatile food and administered prices, was steady at 3.49 percent last month from the previous month, Suryamin said.
Although the prospect of the Fed, to rise rate eases following the release of the country’s GDP growth data in the second quarter, the Indonesian central bank may refrain from applying an easing policy as it has to maintain rupiah at its targeted range prior to a huge influx of assets repatriation.
The Southeast Asia’s largest economy is attempting to lure foreign investment and is struggling to boost export, most of them commodities, which have rebounded in recent months.
Accelerating economy in China in the first quarter of 6.7 percent and the recent easing policy of the Bank of Japan are expected to rise demand of exported commodities from Indonesia.
The Indonesian central bank has aggressively risen its basic rate by 100 basis points to 6.5 percent this year, but it kept it steady in July after the endorsement of tax amnesty law by lawmakers.
The bank, which has adopted the reverse rate as a new policy for its benchmark interest rate beginning on August 19, targets 2016 inflation to stay between 3 percent to 5 percent.
The lender aims to support the effort government effort to spur GDP growth at 5.2 percent this year, faster than 4.79 last year.
Indonesia’s consumer price index accelerated at the slowest pace in five years in July as the government could control prices which regularly rise during fasting month and prior to the Islamic festivity.
The national statistic bureau announced on Monday that annual inflation eases to 3.21 percent in July compared with adjusted 3.45 percent in June.
On month, July’s inflation reached 0.69 percent, rising from 0. 66 percent in June, said Suryamin, head of the bureau.
“Unprocessed food prices still contributed, the highest, to the inflation. It is because of the impact of fasting month of Ramadhan and the Islamic festivity,” he told a press conference at the bureau.
Muslims in Indonesia, the world’s largest Muslim country, celebrated Eid al-Fitr on July 6 and July 7 after performing one-month fasting.
Annual core inflation, excluding volatile food and administered prices, was steady at 3.49 percent last month from the previous month, Suryamin said.
Although the prospect of the Fed, to rise rate eases following the release of the country’s GDP growth data in the second quarter, the Indonesian central bank may refrain from applying an easing policy as it has to maintain rupiah at its targeted range prior to a huge influx of assets repatriation.
The Southeast Asia’s largest economy is attempting to lure foreign investment and is struggling to boost export, most of them commodities, which have rebounded in recent months.
Accelerating economy in China in the first quarter of 6.7 percent and the recent easing policy of the Bank of Japan are expected to rise demand of exported commodities from Indonesia.
The Indonesian central bank has aggressively risen its basic rate by 100 basis points to 6.5 percent this year, but it kept it steady in July after the endorsement of tax amnesty law by lawmakers.
The bank, which has adopted the reverse rate as a new policy for its benchmark interest rate beginning on August 19, targets 2016 inflation to stay between 3 percent to 5 percent.
The lender aims to support the effort government effort to spur GDP growth at 5.2 percent this year, faster than 4.79 last year.
