June's inflation will be in the order of 0.3 percent

Liputan6.com, Jakarta – The inflation rate in June 2018 is forecast at 0.3%. This figure is lower than that of June 2017, which is 0.69% but higher than the inflation rate of 0.21% in May 2018.

Bhima Yudhistira Adhinegara, Institute economist for the development of the economy and finance (INDEF) to the purchasing power of the population especially with the disbursement of the vacation allowance (THR) of civil servants and the private sector during Lebaran, but in general demand for price increase on the demand side is still weak.

"The price of raw materials is not soaring because sellers are afraid to raise prices because the purchasing power of their people is still low.This can be verified in May when Ramadan is below the underlying inflation. " He added that what drives up inflation in June is because there is a seasonal increase in transport fares, particularly air transport due to the return of Lebaran. "And the rising cost of aviation aircraft, adjusting world oil prices," he said.

According to Bhima, it should be noted that inflation in the second half of the year will increase as unsubsidized fuel prices become more expensive as a result of world prices for crude oil. In addition, the weakening of the rupee creates imported inflation, especially in food and beverages.

"The last thing about rising interest rates immediately responded by banks by raising interest rates, should increase production costs will be responded by increasing the price of sellers of goods ", he said.