LONDON: Bank Indonesia (BI) has changed its forecast for July’s inflation rate to 0.74 percent from 1 percent as a result of declining prices of several staple-food commodities. BI governor Agus Martowardojo said in Jakarta on Friday that the prices of several food commodities, including eggs, had fallen, which contributed to the lower inflation forecast for July.
“In the third week of this month, our forecast was 1 percent inflation, but we slashed it to 0.74 percent in the fourth week because of the falling prices of several staple foods,” Agus told journalists. The central bank earlier said it would coordinate with regional inflation-controlling teams to stabilize basic commodity prices. It had also predicted this year’s inflation would peak in July partly following the government’s plan to increase electricity rates.
