Food prices in traditional markets rose on Monday, according to national PIHPS data. Bank Indonesia Governor Destry Damayanti said volatile food inflation had reached 5 percent and core inflation stood at 2.8 percent, speaking at a press conference after a limited economic meeting at Merdeka Palace in Jakarta.
Chili and shallots lead the increases
Red bird’s eye chili rose 47.14 percent to 152,950 rupiah per kilogram. Medium shallots climbed 42.8 percent to 53,050 rupiah, and medium garlic gained 25.06 percent to 48,150 rupiah. Large red chili rose 22.25 percent to 91,750 rupiah per kilogram.
Fresh broiler chicken meat rose 23.4 percent to 50,100 rupiah per kilogram. Fresh chicken eggs gained 12.98 percent to 33,500 rupiah. Beef prices moved the other way, with quality I beef down 6.82 percent to 142,200 rupiah per kilogram.
Central bank sets its target corridor
Damayanti said the central bank’s aim is to keep volatile food inflation within its corridor of 2.5 percent, plus or minus 1 percent. She described the 5 percent reading as something that needs attention. Bank Indonesia will coordinate with the Ministry of Agriculture on supply, she said.
Damayanti said the bank would remain vigilant in the market. The source gives no further detail on the policy tools under discussion.
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Source: Bank Indonesia
