JAKARTA, Aug 1 (XINHUA/APP): Indonesia’s inflation in July reached 4.94 percent, the highest in seven years and exceeding the central bank’s target range, the Statistics Indonesia (BPS) said on Monday.
“This is the highest inflation since October 2015 which reached 6.25 percent year-on-year,” BPS head Margo Yuwono told a press conference.
The figure is still relatively well managed, as the core inflation is 2.86 percent, said Yuwono, indicating that Indonesia’s economic fundamentals are still stable but the state must remain vigilant against the inflation.
The government is reluctant to increase fuel prices despite rising global prices, and restricts the sale of subsidized energy to only the poor to control domestic commodity prices and suppress inflation.
The Bank Indonesia, the central bank, estimated that the country’s inflation this year would exceed the target range of 2-4 percent, as global commodity prices rise, particularly food and energy, but figure is expected to return to normal next year.
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