Indonesia expected to log subdued inflation this year

Source: Xinhua | 2019-12-04

Indonesia's inflation this year has been forecast to be subdued, giving opportunity to the monetary policy maker to further apply economic stimulus.

Indonesia's Finance Minister Sri Mulyani Indrawati said Tuesday that she forecast the consumer price index will go below 3.5 percent at year end, which remains in the target range of the Indonesian central bank of 2.5 to 4.5 percent.

The minister made her estimate based on the year-to-date (January to November) inflation of 2.37 percent.

Although consumption may rise ahead of Christmas and New year next month, it will not ratchet up significantly, she said.

"Inflation will still in the target range of the government. It will be below 3.5 percent," the minister said.

The Indonesian central bank -- Bank Indonesia -- has heralded a further economic stimulus in months to come to help shore up gross domestic product growth which has been dragged down by the weakening global economic growth.

The government has said that the country is likely to fail the initial growth target of 5.3 percent this year.