REPUBLIKA.CO.ID, JAKARTA -- Indonesia's inflation rate this year has the potential to fall short of the government-set target of 5 percent, Deputy Chief of the Central Statistics Agency (BPS) for Distribution and Service Statistics Sasmito stated.

"Until December 2015, the impact of the fuel price hike in November 2014 will disappear, so by the end of this year, it seems that the inflation rate might fall short of the government's target," he remarked during a press conference here on Wednesday.

He noted that the key to keeping the inflation rate in check this year depends on the government's efforts to manage the inflation rate during the fasting month of Ramadhan and Eid al-Fitr festivities in June and July and Christmas celebrations in December.

"The transportation and education sectors will push the inflation rate in July," he pointed out.

Transportation fares and education fees in July will relatively be high, he affirmed.

He forecast that the prices of commodities are expected to fall in the third and fourth weeks of July after high inflation rate is recorded in the first two weeks of July.

"Luckily, (the Eid al-Fitr festivities) is falling in the middle of the month, so the decline in the prices will help to balance the price hike that occurred during the first two weeks of Ramadhan," he noted.

The inflation rate in August will be relatively stable, fueled by the rice harvest, which will lead to adequate supply.

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