Indonesia sets 2011 inflation rate at 5.3 %

Monday, 17 January 2010

ANTARA News Agency

President Susilo Bambang Yudhoyono said the inflation rate in 2011 was expected to remain around 5.3 percent.

"We want economic growth to reach 6.4 percent and inflation 5.3 percent. This is the assumed and target figure," the president said when addressing a working meeting of governors at the Jakarta Convention Center here on Monday.

He said 5.3 percent was the inflation rate assumed in the government`s 2011 work plan.

In the meantime, according to the Central Statistics Agency (BPS) inflation in the January - December 2010 period stood at 6.96 percent with the highest point in December reaching 0.92 percent.

According to BPS head Rusman Heriawan, the biggest contributors to inflation in December were raw food reaching 3.5 percent, finished food 1.23 percent and housing, water, electricity 1.01 percent.

Overall, he said, the inflation in 2010 was affected by rice price which contributed 1.29 percent, electricity tariff 0.36 percent, red chili 0.32 percent, gold ornament 0.27 percent and red union 0.25 percent.

Of the 66 cities in Indonesia, 65 contributed to the inflation, while one contributed deflation, namely Sorong.

The president delivered his address to the working meeting which was attended by ministers, governors, mayors and district heads from all over the country.