Rupiah`s Depreciation Has Little Impact on Inflation in May

Jakarta, MINA — The depreciation of the rupiah against the US dollar had a very small impact on inflation in May 2018, according to the Bank Indonesia (BI) governor, Perry Warjiyo.

The rupiah that came under external pressure did not have a significant impact on the May 2018 inflation in the country, he was quoted by Antara News as saying here on Monday.

The controllable inflation rate at the start of the holy month of Ramadhan was the result of good coordination between the government and the central bank to ensure food supplies, he said.

Earlier in the day, the Chief of the Central Statistics Agency (BPS), Suhariyanto, said the inflation rate stood at 0.21 per cent in May 2018 as food prices did not rise significantly ahead of Eid al-Fitr festivities.

He shared the BI governor`s view that the depreciation of the rupiah against the dollar had no impact on the inflation rate. Moreover, the core inflation rate could be kept at 0.21 per cent in May 2018.

“Normally the depreciation (of the rupiah) will have an impact (on the inflation) if it lasts for a quite long time, one year at the most, and the depreciation is deep. But the current depreciation is not deep,” he said.

BPS said the May 2018 inflation was fuelled by a rise in the prices of food commodities including purebred chicken meat and eggs, fresh fish and onions.

The other factor was an increase in the price of air tickets. . ( T/RS5/RS1)

Mi’raj Islamic News Agency (MINA)