A lady shops at a supermarket in Bogor, West Java, Indonesia on Jan. 4, 2023. The country’s inflation has held above 5%, driven by high food prices.
Adriana Adie | Nurphoto | Getty Images
Indonesia’s inflation will remain above 5% in the primary half of 2023 and below 4% within the second half, mainly as a consequence of high food prices, central bank governor Perry Warjiyo said on Sunday, warning that the fight to regulate inflation must proceed.
“The sport isn’t over, allow us to 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 cut back inflationary pressures.
“We must control inflation since it pertains to people’s prosperity and welfare,” he said. “Let’s strengthen synergy amongst stakeholders to regulate inflation.”
Indonesia’s Consumer Price Index rose 5.47% on a yearly basis in February, largely as a consequence of rising prices for fuel, rice, cigarettes and air travel, though core inflation unexpectedly slowed to three.09%.
Prices of food, mainly rice and cooking oil, rose in most provinces throughout the past month, Perry said, and so they are expected to rise further in coming weeks as a consequence of high demand ahead of the Muslim fasting month of Ramadan later this month and the Eid al-Fitr festival in April.
The El Nino weather phenomenon, resulting from a warming of the Eastern Pacific Ocean waters, is anticipated to guide to dry weather for Indonesia and reduce food output later this 12 months, putting more upward pressure on prices.