VIVAnews - Bank Indonesia (BI) predicts that the inflation rate in 2010 will be around 5 percent due to the recovering domestic demand and the increasing commodities prices.
"The 2010 inflation rate is predicted to increase but still under control, around 5 percent, plus minus 1 percent," said BI deputy governor Budi Mulya in Jakarta on Friday, Aug. 21.
BI will direct the monetary policy to maintain the economic recovery in 2010. The direction will also consider the prospect of inflation rate target in 2010.
The 2010 economic growth is predicted to be around 4 percent. Along with the slowing economic activities, the inflation movement will also be slowing down to be under 5 percent in the end of 2009, falling from 11.06 percent in 2008.
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Translated by: Ariyantri E. Tarman
