REPUBLIKA.CO.ID, JAKARTA -- Bank Indonesia (BI) has forecast that the country will record a deflation for the second month in a row in September 2018. Deflation rate would be of -0.04 percent.

"Looking at the result of a price survey, we forecast that we will witness a deflation of -0.04 percent month-to-month, (bringing the inflation to) 3.03 percent year-on-year," BI Governor Perry Warjiyo stated here on Friday.

Perry has forecast that the prices of food items, including beef, chicken meat, and eggs, will decline this month. Meanwhile, the price of rice will remain stable.

"This proves that the government's policies, particularly those related to the supply and distribution of food items, have run properly, so the country's inflation remains low and under control," he noted.

Hence, Perry believes that the inflation target of 2.5-4.5 percent for this year will be achieved. According to him, this year's inflation will be lower than the mid-target rate of 3.5 percent.

He further expressed gratitude to the government that had continued to ensure the supply and distribution of foodstuffs. The controllable expectation of the inflation rate at the consumer, producer, and money market levels has also encouraged deflation, he stated.

"Hence, the expectation of the inflation rate remains under control," he added.

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