Chili Regular Price Rise in Second Quarter

JAKARTA, KOMPAS.com - Bank Indonesia remains confident, target rate of inflation at 5 percent plus minus 1 will be achieved at the end of the year. BI see price increases herbs, such as red peppers and onions that dominated inflation in the months of June, only temporary.

"Chili can climb, but 2-3 months may go down because, if a good price, farmers will plant more. Now it is less regular season, we all feel the weather now. You know that curly red chili if it's raining a lot can damage crops , "he said in the BI building, Monday (05/07/2010).

Therefore, BI see inflationary pressure due to rising prices herbs are not permanent. BI sure, the price will go down though will not return to the previous price.

According to Nasution, this tendency to experience within the last 7-8 years. "Always in the second quarter jumped up, later in quarter three and four began to fall again. Although the (decline) is not to the initial level, but down," he said.

BI recorded indication of increasing inflationary pressures. In June 2010, inflation reached 0.97 percent (month to month) and 5.05 percent (year on year or yoy). Source of inflationary pressure mainly came from rising inflation group of foodstuffs, especially herbs for 11.51 percent (yoy) due to the uncertainty of the season.

In addition, in the future, the trend of inflation pressure is also thought to have originated from the impact of the increase in TDL and the coming month of Ramadhan and Idul Fitri.

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