Inflation in 2010 is expected to break 7.01% even though the government estimates inflation to reach only 6.7%. Because, in the previous month of November 2010 recorded year on year inflation rate has reached 6.33% coupled with the increase in food at the end of 2010.
Economist PT Bank Danamon Tbk Helmi Arman in his research predicts inflation in December will reach 0.98%. According to Helmi, the main drivers are still caused by rising food prices, such as rice, chili, cooking oil coupled with the increase in seasonal transportation costs (Christmas and New Year). Increase in food prices alone due to climate conditions that are not friendly both domestically and globally.
Now the question is whether the rise in food prices should be feared? Helmi said the price of food is a commodity with an unstable price
(volatile) so it should not need to get more attention, either increase or decrease.
Bank Indonesia (BI) itself has confirmed in its financial statements, while core inflation is still below 4.3%, then inflation from volatile foods should not be feared.
However, Helmi assessed another, wet climate that causes food prices to increase BMKG estimated will occur continuously. Even La Nina is estimated
lasts until May-2011 so as to cause core inflation to rise.
"Thus it is not wise to ignore the information because it will have an impact on the rise in inflation,"