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Friday, December 6, 2013

Deputy Minister of Finance : Inflation 2016 - 2018 under five percent


Deputy Minister of Finance : Inflation 2016 - 2018 under five percent

Deputy Finance Minister Bambang Brodjonegoro said the government would seek the inflation rate in the period 2016 - 2018 under the number five per cent by way of controlling the " administered " and " volatile " .

" In the years 2016 - 2018 , core inflation declined , for that factor should be minimized plus administered volatile . If it is controlled , automatic inflation will be below five percent , " he said in Jakarta on Friday .

According to Bambang , one way to curb inflation in the next few years is to get subsidized fuel price increases following the market mechanism and continue to make efforts to restrictions premium and diesel .

" We have to get used rising fuel prices that followed the dynamics of the market mechanism , subsidies still exist but its options such as subsidies remain , then the restriction would be made , it could reduce inflation , " he said .

In addition , Bambang , other efforts that can be done is through the provision of domestic production to keep the price of food needs for the community , such as rice and beef , so " volatile " remain stable .

" Volatile food is actually not a big contributor . However , must be maintained . If domestic production is not enough , should diiimpor , if you do not want to import , domestic production should prove adequate in every way , " he said .

Thus , he expects the achievement of the inflation rate from 2015 is in the range of four percent plus or minus one percent , and a further decline in 2018 to a peak in the range of three percent plus or minus one percent .

From January 2010 to June 2013 , the inflation rate in the range of five percent plus or minus one percent on an annual basis (year on year ) . However , since the rise in fuel prices , the inflation rate from July to November 2013 in the range of 8.4 percent ( yoy ) .

The inflation rate by the end of 2013 is estimated at below the 8.5 percent ( yoy ) or higher than assumed in the Budget Amendment by 7.2 percent ( yoy ) , while in the state budget in 2014 , set a target inflation of 4.5 percent plus minus one percent or 5.5 percent

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