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Indonesian gov't told to take cautious measures to address inflation

Xinhua, May 7, 2015 Adjust font size:

Indonesian central bank Bank Indonesia (BI) Governor Agus Martowardojo said on Thursday that cautious measures need to be applied by the government so as to assure the compliance of 4 percent plus minus 1 percent inflation target set for this year.

The cautious measures need to be applied on the government's public policies which might be prone to inciting inflation, he said. "For an instance, if there is a policy to increase the price in transportation sector. It must be well-planned and issued wisely so as to assure that the inflation remains in its target track," Agus said.

Other planned price increase policies estimated to incite inflation were fuel price hike, gas canister and power tariffs. Government has previously increased the prices of fuel and gas canister in the last six months and has planned to increase power tariff for households this month.

Indonesia's Central Statistic Bureau (BPS) released data on national inflation earlier on Tuesday, showing that the nation has recorded an average of 0.36 percent price increase of goods and services in April this year, while the year-on-year inflation rate as of April was recorded at 6.79 percent.

Agus said that the central bank is now anticipating the seasonal phenomenon of Ramadan and Muslim's Idul Fitri festivity that used to propel inflation, adding that BI will continue its efforts in monitoring government's planned policies in a bid to further control inflation. Endi