Government Optimistic Inflation in February Low
Wednesday, 28 February, 2007 | 15:21 WIB

TEMPO Interactive, Jakarta: The government is optimistic that the rate of inflation in February will be lower compared to January's although rice prices have increased sharply in several area.

Inflation in February is estimated to be less than one percent, lower than the January inflation rate of 1.04 percent.

According to Paskah Suzetta, the State Minister for National Development Planning, factors affecting inflation, such as rice price, do not have too significant an effect over inflation jumps.

“The floodwaters have gone already. Now, we are entering the harvesting season although prices are still relatively high,” he said yesterday (02/27) in Jakarta.

The government, he said, has been able to control the after-effects of the flooding as well as the rice price increases.

Farmers are also starting to produce rice now so that the balance between supply and demand of this primary need is becoming stable.

“It will not interrupt the accomplishment of the government's economy during the first quarter, including correcting the poverty rate,” he said.

Budget absorption will also be in line with the set time and tender implementations have also been carried out by every related department.

“There are no corrections in the first quarter,” said Paskah.

Anton Aprianto