REPUBLIKA.CO.ID, JAKARTA -- Director of Institute for Development of Economics and Finance (Indef), Enny Sri Hartati, predicted the inflation rate in 2016 would reach five percent. It was higher than the government's target of 4.7 percent.

"Inflationary pressure is still going strong both from demand and supply. It was estimated to reach five percent in 2016," Enny said, in Jakarta, Friday (27/11).

She stated, inflation in 2016 will be influenced by several factors, such as exchange rate and government policies on price of fuel, electricity, and toll roads. In addition, inflation will also be influenced by price of volatile items, such as food prices.

"Inflation due to depreciation of the exchange rate is projected to still occur in 2016. This is in line with the projections of the Fed's decision to raise the rate," Enny added.

Meanwhile, the government in 2016 is projected to raise prices of several items such as toll roads and electricity. According to her, it was due to high potential of deficit in food commodities.

"The only stimulus that affected sustainability of inflation in 2016 was the world oil price correction," said Enny.

Based on data from Central Statistics Agency (BPS), the inflation rate from January to October 2015 was recorded in 2.16 percent and the inflation rate year-on-year (October 2015 to October 2014) was 6.25 percent.

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