REPUBLIKA.CO.ID, JAKARTA -- Coordinating Minister of Economy Sofyan Djalil is optimistic that inflation will decline under 1 percent in January 2015. The fuel price hike will not contribute significantly to the inflation.

"The data shows that inflation in November is lower than we expected. Inflation will only occur in one or two months," Djalil said on Monday, December 1.

Statistics Indonesia stated on Monday that inflation in November 2014 hit 1.5 percent month on month. It is lower than the government expected, which was around 2 percent.

Djalil said food distribution cushioned the impact of inflation from fuel price hike. However, he admitted that inflation in December would be high due to increasing consumption. While in March, he expected a deflation.

Deputy on Service and Distribution at Statistics Agency Sasmito Hadi Wibowo said fuel price hike was taken at the right time. "With the hike on November, the impact on inflation is seen in November and December," he said. Inflation in November, based on trend, is usually low.

He said that inflation could be controlled in December as long as government managed staple food price, such as rice and red pepper. Government must also concern on transportation tariff hike. "The tariff has increased in November. I think it will not steeply increase again," he said.

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