JAKARTA: Indonesian inflation will stay high in the first and second quarters of this year and start slowing by Q3, Bank Indonesia Governor Agus Martowardojo said on Friday.
The governor, in comments to reporters, reiterated that the central bank's 3.5-5.5 percent inflation target for the year was still attainable. In 2013, during which fuel prices rose sharply, inflation was 8.38 percent.
"January inflation was higher than we predicted. It shows that there's going to be high (inflation) expectations in the first two quarters and will start to slow down in quarter three," Martowardojo said, pointing to disruptions from unusual weather conditions and logistical problems.
The month-on-month inflation rate in January was 1.07 percent, slightly above a forecast by economists for 1.0 percent.
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