FRIDAY, 17 JANUARY, 2014 | 19:06 WIB
TEMPO.CO, Jakarta - Finance Minister Muhammad Chatib Basri, stated that the increasing precipitation and flood in several areas in Indonesia will affect inflation rate. He explained that it is mostly because of the disrupted goods and services distribution.
"We will see it on January 20 in the monthly financial report," said Minister Chatib.
Deputy Minister Bambang Brodjonegoro stated that weather and flood pose only insignificant effect to inflation. However, he added that the government must continue to be aware because both issues can disrupt food distribution.
Economy Expert from Gadjah Mada University Tony Prasetiantono, stated that inflation was also caused by harvest failure due to flood.
"This contributes to inflation. Yet, the coming months show that such factor will weaken. Therefore inflation rate will drop," he said. "Historically, inflation in January ranges around 0.5 to 1 percent, higher than any other months."
GALVAN YUDISTIRA
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