BANDUNG-Bank Indonesia (BI) West Java Representative predicts West Java inflation will still be controlled in the target range of 4% plus minus 1, despite posting a rise in the previous quarter.
West Java inflation in the first quarter of 2017 was recorded at 3.37%, an increase compared to the fourth quarter of 2016 of 2.75% (yoy).
"However, this realization is still lower than the historical average of inflation in the first quarter (2012-2016) of 5.11% (yoy)," said Wiwiek SW, Head of BI West Java Representative, Thursday (8/6).
The increase in inflation is still driven by administered price groups, such as cigarette taxes, and electricity rates for the 900 VA group. Then also due to the moment of Ramadan and Eid Fitr which hoisted the price increase of basic needs.
"FKPI and clerical forum with West Java provincial government constantly appealed to the public to wisely shop, so it can suppress inflation, on the other hand the market operation (OP) with Bulog," he said.
He said West Java inflation in 2017 is expected to remain safe but there is still a risk of rising prices of administered prices and volatile foods that must be wary of. Also risk from rising oil prices due to the impact of political warming in Qatar and the Middle East. Jo