Indonesia: Government needs to focus on inflation control: Bank Indonesia – 22 May 2017

• Bank Indonesia (BI) has advised the government on the importance of focusing on inflation control, following the increase of administered prices in Apr 17.
• Indonesia’s inflation rate stood at 4.17% y/y in Apr 17 as administered prices, particularly electricity and fuel, inflated by 8.68% y/y.
• The country recorded a 3.02% y/y inflation rate in 2016.
• Volatile food prices deflated by 1.26% in Apr 17, caused by price decreases in major food commodities, such as red and green bird’s eye chili, rice, sugar, beef and chicken eggs.
• The central bank will cooperate with the government and local administrations across the country to pursue inflation controlling measures.
• “BI always discusses inflation because higher prices weaken people’s purchasing power,” Mirza said, adding that over-the-roof inflation would reduce the real interest rate of investments making the country less lucrative for big investors.

External Link : http://www.thejakartapost.com/news/2017/05/22/government-needs-to-focus-on-inflation-control-bank-indonesia.html