- Vivanews/Nurcholis Anhari Lubis
VIVAnews - The National Statistics Agency (BPS) recorded deflation of 0.31 percent in April, which was mainly contributed by foods.
However, Bank Indonesia estimated the inflation rate between Q3 and Q4 this year will improve. The high demand on housing sectors as well as the rise in wages are held responsible of the issue.
"The high inflation rate will depend much on administered prices," said Governor of Bank Indonesia, Darmin Nasution, on Friday.
In addition to being affected by demands on homes and salary rise, the core inflation is likely caused by the soaring prices of gold and jewelleries.
Based on the BPS data, the April's deflation helps the inflation in January-April to reach 0.39 percent, while year-on-year inflation will hit 6.16 percent.
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