January Inflation Yet to Disturb Inflation Target: BI

Jakarta (Antara) - Bank Indonesia (BI), or the central bank, is of the view that the 1.07 inflation rate in January will not disturb the country's inflation target as the annual inflation is still following a downward trend. In a press statement released to Antara here on Monday, the central bank stated that the consumer price index inflation in January 2014 was year-on-year recorded at 8.22 percent or down by 0.16 percent from the inflation noted in December 2013. The BI will keep abreast of the developments in inflation over the coming months, so that it will be able to better manage it in accordance with the set target. "The inflation increased due to the influence of volatile food prices, which reached 2.89 percent month-to-month, as a result of the flood disaster that hampered food production and distribution across various regions in Java and Sumatra," noted Peter Jacobs, communications director of BI. The BI described the step taken by the Central Bureau of Statistics (BPS) as positive, wherein it used 2012 as the annual basis for its inflation calculation. "The calculation is in line with the public consumption pattern and economic development, which can support the formulation process of Bank Indonesia's mixed polices," he pointed out. The BPS recorded an inflation of 1.07 percent in January, which rose due to hindered food distribution as a result of bad weather. "Food has caused a rise in inflation since distribution efforts in January have been affected by the bad weather conditions," BPS Chief Suryamin remarked here on Monday. (*)