Time for Strategy Correction

THE market has predicted that inflation in Indonesia will rise in the next few months. However, the Central Statistics Agency’s (BPS) last Friday announcement still caused quite a market shock. As of June, annual inflation in Indonesia jumped to 4.35 percent per year, the highest in the last five years. This annual inflation has surpassed the target limit set by the government and Bank Indonesia (BI), which was pegged at only four percent.

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