Palu, C Sulawesi, (Antaranews Sulteng) - The representative office of Bank Indonesia for Central Sulawesi predicted Palu`s inflation would be around 2.7-2.9 percent in the first quarter of this year.
The estimated inflation is lower than and relatively more under control compared with inflation in the same period in 2017, head of the representative office Miyono told reporters here on Friday.
Miyono said the prediction is a result of studies taking into account the government`s decision not to raise the electricity base tariff (TDL), and the prices of oil fuel (BBM) and LPG in 3-kg canister.
Inflation contributed by commodities with administered prices tended to be stable, he said.
The core inflation is also expected to be relatively stable, and a decline is even expected for the inflation of volatile goods such as rice.
The price of rice is safe with stock of Bulog enough for six months and harvest is not far away, Miyono said.
In addition, the climate is favorable that fish supplies in the city of Palu would be stable and there should be no price hike, he said.
In 2017, Palu`s inflation was 4.33 percent, which was relatively high compared with 1.49 percent in 2016 and 4.17 percent in 2015.
Miyono said administered prices such as electricity tariff and cost of extension of motor vehicle license, contributed the largest part to inflation in the provincial city. Fresh fishes also contributed significantly to the city`s inflation in 2017 .
The Central Sulawesi office of the Central Bureau of Statistics said in January, 2018, Palu`s inflation was 0.69 percent. The inflation was attributed mainly to food price hike.
There were 10 commodities contributing to the city`s inflation including rice 0.31 percent, skipjak 0.20 percent, fresh water fish (mujair) 0.06 percent, filter clove flavored cigarette 0.05 percent, tomato 0.04 percent, selar fish 0.03 percent, chicken meat 0.03 percent, golden ornament 0.02 percent and live chickens 0.02 percent.
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