Indonesia's annual inflation to slow to 1.34 pct in August
Source: Xinhua | 2020-08-29
The Indonesian central bank, Bank Indonesia, estimated that the annual inflation would accelerate at a slower pace in August as the consumption remains weak during the novel coronavirus pandemic.
Bank Indonesia on Friday projected that the consumer price index would slow to 1.34 percent in August on a yearly basis from 1.54 percent in July, Spokesman of Bank Indonesia Onny Widjanarko said.
On a monthly basis, the inflation was forecast at a minus 0.04 percent in August, compared with a minus 0.10 percent in the previous month, Widjanarko noted.
Gold accessories, cooking oil and red chilly contributed to the decline in the deflation in August, the spokesman said.
Bank Indonesia would keep strengthening coordination with the government and the related authorities to monitor the spread of the COVID-19 and its risks on the economy, he said in a statement.
The annual inflation forecast in August was below the Bank Indonesia's inflation target of 2 to 4 percent this year.
Still, the lender seems not to apply loosening policies as the external pressures on the country's currency persist during the global economic uncertainty.
The Indonesian economic growth was expected to settle between zero and minus 2 percent in the third quarter as the consumption remains weak after decelerating 5.32 percent in the second quarter, Finance Minister Sri Mulyani Indrawati has revealed.
The COVID-19 pandemic has forced Indonesia to downgrade the economic growth target between minus 1.1 percent and 0.2 percent this year, according to her.
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