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Inflation rate low, food prices high, says Finance Minister Sri Mulyani

Tempo - September 21, 2023

Moh. Khory Alfarizi, Jakarta – Finance Minister Sri Mulyani Indrawati reported that the inflation rate in Indonesia per August 2023 is on the low compared to the rest of ASEAN or G20 countries.

"But we need to remain vigilant since food prices are sharply rising this August at 2.4%," she said during press conference of State Budget live streamed at the ministry's official YouTube account on Wednesday.

Additionally, Sri Mulyani explained that the inflation rate in various countries also shows signs of slowing down, unlike the interest rate in developed countries. "This is a situation where the economic performance of each country will be affected by a higher for longer interest rate," she said.

The interest rate in the US placed at 5.5%; the EU at 4.5%; and the UK at 5.2%. According to Minister Sri Mulyani, the inflation rate of these countries is way higher than targeted.

Meanwhile, in developing countries like Brazil, Mexico, and South Africa, the increase in interest rates is significant. Brazil's interest rate reached 13.7% since last year, while in Mexico it reached 11.25%, followed by South Africa at 8.25%.

"Indonesia's interest rate, in this case, reached 5.75% since our inflation rate is at a moderate 3.3%," she said. "Our inflation rate is quite good since the volatile food rate shows an increase at 2.4%. Meanwhile, the administered price has been corrected."

Source: https://en.tempo.co/read/1774509/inflation-rate-low-food-prices-high-says-finance-minister-sri-mulyan