Indonesia’s consumer consumption index (CPI) was in good control in July. (Photo: gbgindonesia.com)

Jakarta (VNA) – Indonesia’s consumer consumption index (CPI) was in good control in July, according to the Bank Indonesia (BI)’s Executive Director for Communications Augusman.

Last month’s CPI stood at 0.28 percent as compared to the figure of 0.59 percent in June. BI attributed the result to the declining demands for goods after the Islamic holiday of Idul Fitri.

The level is in line with the average figure recorded in recent four years, which stood around 0.27 percent.

The central bank is continuing to work tirelessly with the Government to control inflation rate to keep it at a low and stable level.

Core inflation in July was controlled despite rising prices of services. The rate accelerated from 0.24 percent to 0.41 percent due to a surge in mobile phone tariffs and tuition fees.

Controlled core inflation was inextricably linked to policy consistency by terms of forming and anchoring rational inflation expectations, including rupiah stabilisation strategy in line with the currency fundamental value.

BI forecast the inflation rate will be within the target range for 2018, at around 3.5 percent.

The World Bank earlier predicted Indonesia’s economic growth to reach 5.3 percent this year, lower than the country’s set target of 5.4 percent.

Derek Chen, a World Bank Senior Economist, said that Indonesia’s economic growth will be driven by investment, households’ spending, and impacts of the general elections of administrative heads which will be held across the nation this year.-VNA