Indonesia likely to miss inflation target this year
2010-12-20 15:40:52
The Indonesian government said it will be difficult to meet this year's inflation target of 5.3 percent, explaining that extreme weather had resulted in soaring food prices, the Jakarta Post reported on Monday.
"I must admit that it is hard for us to meet the inflation target of 5 plus minus one as the extreme weather has had a significant impact on our food (prices)," Coordinating Economic Minister Hatta Rajasa said.
Meanwhile, Bank Indonesia (BI) Governor Darmin Nasution said that this year's inflation rate may likely surpass 6.5 percent, but next year would not pass the rate forecast of between 4 and 6 percent, as "it will be in the range of 5 plus minus 1 percent".
BI predicts next year's inflationary pressure to remain heavy, but the rate will not be as high as this year, Darmin says.
The revised 2010 state budget sets the inflation target at 5.3 percent, while the central bank has forecast an inflation rate of between 4 and 6 percent.