REPUBLIKA.CO.ID, BANDUNG -- Bank Indonesia (BI) guarantees inflation remains manageable as government plans to hike the price of subsidized fuel soon. Government's measure believed to be taken this November is expected to push the inflation.
"We prepare to respond and cooperate with the government," the central bank's Governor Agus DW Martowardojo said on Tuesday, November 11.
However, the former Minister of Finance appreciates the fuel price adjustment. He believes that the impact of the fuel price hike to inflation will only last in the first three months.
BI Deputy Governor Perry Warjiyo said BI and regional inflation controlling team (TPID) had prepared several steps to reduce inflation from the fuel price hike. "We have prepared three steps," he said. Those steps are preventing fuel scarcity, controlling inflation, and securing food supply.
Regional inflation has reached to 7 percent in October 2014. The highest inflation rate is in West Sumatera, Banten, Central Sulawesi, and North Sulawesi.
Meanwhile, January-October calendar year inflation rate is recorded to reach 4.19 percent and the year-on-year (y-o-y) inflation is at 4.83 percent. October’s core component inflation is recorded at 0.27 percent and y-o-y core inflation rate is 4.02 percent.
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