Asia-Pacific

Indonesia to boost food supply to ease inflation pressure

(Xinhua)
Updated: 2010-07-15 16:21

JAKARTA -- Indonesian Finance Minister Agus Martowardojo said on Thursday that the government will boost food supply to reduce rising pressure from inflation.

The statement comes as the country's inflation pressure is predicted to rise significantly in the next three months following the acceleration of the inflation in June which stood the highest in the last 13 months.

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"As we see that there was a hike in inflation in June which mostly contributed by foods," Martowardojo said at the Finance Ministry.

The rise of electricity tariff earlier this month, the start of new term of study in schools, Islamic holy month of Ramadhan followed by Islamic festivity, where the household's spending will normally increase sharply, from July to September, are the triggers of the prices hike.

The finance minister said that the government would increase food supply and boost its transport.

"Therefore, we will ensure that all the logistic issues, the transports of foods, and supply of foods (can be boosted)," Martowardojo said.

The government increased electricity tariffs by an average of 10 percent on July 1, by which the National Statistic Bureau forecast to raise inflation pressure by over 0.22 percent in July.

The annual inflation in June accelerated at 5.05 percent, higher than that of in the previous month of 4.16 percent, the bureau said.

The central bank has targeted 4 to 6 percent inflation by the end of this year.