"We must control inflation because it relates to people's prosperity and welfare," he said. "Let's strengthen synergy amongst stakeholders to control inflation." The Consumer Price Index in Southeast Asia's largest economy rose 5.47% in February from a year earlier, largely due to higher prices for fuel, rice, cigarettes and air travel, though core inflation unexpectedly slowed to 3.09%.
Prices of food, mainly rice and cooking oil, rose in most
provinces during the past month, Perry said, and they are
expected to rise further in coming weeks due to high demand
ahead of the Muslim fasting month of Ramadan, starting this
month and the Eid al-Fitr festival in April.
The El Nino weather phenomenon, resulting from a warming of
the Eastern Pacific Ocean waters, is expected to lead to dry
weather for Indonesia and reduce food output later this year,
putting more upward pressure on prices.
To help Indonesians deal with inflation, the government will
provide social assistance by distributing rice, eggs, and
chicken, chief economic minister Airlangga Hartarto said at the
Makassar event.
The assistance will be distributed in March, April and May,
he said. Indonesia now gives cash transfers under a separate
programme.
"The government and central bank will continue our synergy"
to achieve the government's target of 3.6% for the full year,
"and this will become a strong foundation to face uncertainty in
2023 and 2024," Airlangga said.
The government will also provide subsidies for the
transportation sector and cut the price of several food
commodities for lower-income people, he said, without
elaborating.
(Reporting by Ananda Teresia; Editing by Simon Cameron-Moore
and William Mallard)
