Bank Indonesia (BI) predicts that the inflation rate will return to normal in February 2015 after it increased following the subsidized-fuel price hike in November.

“Month-to-month inflation will return to its normal pattern in February 2015,” BI spokesman Hendra said as quoted by Antara news agencyin Jakarta on Thursday.

According to Central Statistics Agency (BPS) data, the inflation rate in November was higher than the previous month; however, it was still lower than the central bank had predicted. November’s inflation stood at 1.5 percent, up from 0.47 percent in the previous month. Meanwhile, year-on-year inflation stood at 6.23 percent.

The increased inflation in November was primarily triggered by increased inflationary pressures on administered prices and volatile foods. Pressure on administered prices increased primarily because of increases in subsidized-fuel prices, land transportation tariffs and electricity tariffs. – The Jakarta Post


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