JAKARTA: Bank Indonesia recorded that inflation in the capital city reached 0.99 percent in January, higher than the 0.97 percent nation-wide. Meanwhile, the inflation rate in the city in December 2016 was 0.27 percent. Inflation in Jakarta throughout 2017 is predicted to be 3.13 percent lower than the national inflation rate, which has been forecast to be 3.49 percent, said BI official Doni P. Joewono at a statement on Wednesday. Both nationally and in the capital city, increases in vehicle registration fees, electricity rates and food prices were the main contributors to inflation. A 107.38 percent hike of vehicle registration fees contributed 0.27 percent to the inflation rate, while electricity rate hikes contribute 0.16 percent, said Doni.
The central bank predicted that inflation would be lower in February will be lower if the prices of commodities like chilis and meat go down in line with a increased supply to the markets because of better harvests. Meanwhile, he said the electricity rate increase brought about by an end to a subsidy for certain houses with 900 volt-ampere systems will not affect inflation rates in February. “Better coordination between Bank Indonesia, the central government and the Jakarta city administration is needed to assure that inflation in 2017 will be under control,” Doni said.
