BI: May 2014 Inflation Still Undercontrolled

...inflation in eastern Indonesia is likely to increase, he said, especially in parts of Kalimantan and Papua.

Banjarmasin, South Kalimantan (Antaranews) - Senior Deputy Governor of Bank Indonesi (BI), Mirza Adityaswara stated, inflation in May 2014 was still under control as core inflation stable and controllable in food prices.

"The consumer price index in May 2014 recorded an inflation of 0.16 percent, slightly higher than the previous month at 0.02 percent," said Mirza Adityaswara in time of exposure at IAIN Antasari Banjarmasin, Friday.

Moreover, according to him, the restrained inflation supported by ongoing correction in food prices and core inflation stable.

"Going forward, Bank Indonesia watch on inflation risks stemming from the seasonal pattern of religious festivities and other risks, such as potential pressure adjustments in administered prices and the increase in food prices due to the impact of El-Nino.

"For regional inflation in Sumatra and Java undercontrolled supported adequately by ongoing correction of food prices in the area," he explained.

While inflation in eastern Indonesia is likely to increase, he said, especially in parts of Kalimantan and Papua. It was triggered by the increase in air freight and some food commodities, such as rice, meat, chicken and fresh fish.

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