Indonesia’s inflation likely to top 4% next year

BI Governor Perry Warjiyo (Photo: AFP)

Jakarta (VNA) - The high inflation rate in Indonesia is likely to continue in 2023, as Bank Indonesia (BI) projects that prices will remain at a high level.

BI Governor Perry Warjiyo recently warned that the inflation rate may hover above its targeted 2 to 4% next year.

There is a risk that inflation may exceed the upper limit of the target range of 3 plus/minus 1%, as food and energy prices will likely remain high while continued increase in demand will add more pressure to inflation, he said.

As of July, the country’s inflation had reached 4.94% due to higher prices of food, and managed services and goods such as air tickets and fuels.

On August 18, Coordinating Economic Minister Airlangga Hartarto affirmed that, with all available measures, the government is determined to reduce inflation in 2022 to 4-4.8 percent, lower than July’s 4.94%./.

VNA