CNA – Indonesia’s inflation will remain above five per cent in the first half of 2023, mainly on high food prices, before falling below four per cent in the second half, central bank Governor Perry Warjiyo said yesterday, warning that the fight to control inflation must continue.
“The game is not over, let us together anticipate inflation, mainly food inflation,” Perry said at an event on Makassar, in South Sulawesi, where he urged local authorities to work with the central government to reduce inflationary pressures.
“We must control inflation because it relates to people’s prosperity and welfare,” he said.
“Let’s strengthen synergy amongst stakeholders to control inflation.”
The Consumer Price Index in Southeast Asia’s largest economy rose 5.47 per cent in February from a year earlier, largely due to higher prices for fuel, rice, cigarettes and air travel, though core inflation unexpectedly slowed to 3.09 per cent.
Prices of food, mainly rice and cooking oil, rose in most provinces during the past month, Perry said, and they are expected to rise further in coming weeks due to high demand ahead of the Muslim fasting month of Ramadhan, starting this month and Hari Raya Aidilfitri in April.