REPUBLIKA.CO.ID, JAKARTA -- Bank Indonesia (BI) has predicted the May 2017 inflation rate will stand at 0.37 percent month-to-month, due to a rise in the prices of garlic, chicken meat, eggs and transportation tariffs.

Rising public consumption at the start of the fasting month of Ramadhan will also add to the May 2017 inflation rate.

"In the run-up to Ramadhan, demand is high," BI Governor Agus Martowardojo said here on Friday. 

The May 2017 inflation forecast is based on the results of a survey conducted by BI on the prices of commodities until the third week of May 2017, Agus said.

If the forecast proves to be true, the annual inflation rate in May 2017 will reach 4.31 percent, which is at the upper limit of the inflation target of 3 to 5 percent y-o-y set by BI, he said.

Agus further said BI will step up its coordination with the government to increase the role of regional inflation control teams (TPIDs) in all provinces to anticipate inflation rate hike during Ramadhan.

"BI and TPIDs have held discussions and coordination and asked the public to help control (inflation). We need to convince the public that supplies are enough. They need not buy large quantities of foodstuffs," he said.

The result of a survey conducted by BI in the second of week showed the May 2017 inflation rate at 0.27 percent month-to-month.

Despite the new development of the inflation rate, he believed the inflation rate will stay with the inflation target of 4 percent plus and minus 1 percent for this year. 

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