Inflation 2008 at the Bottom 11 Percent If deflation occurred in December

Jakarta - The inflation rate for 2008 will be below 11 percent during December 2008 if deflation occurs. "I think the data show that deflation during December 2008 is not something impossible, so it's possible there could be annual inflation slightly below 11 percent," said Senior Deputy Governor of Bank Indonesia (BI), Miranda S. Goeltom in Jakarta, Wednesday.

BI based on data available, confident that inflation during December 2008 will be lower than that targeted by BI itself.

Central Statistics Agency (BPS) recorded an inflation rate of November 2008 was 0.12 percent, the rate of inflation for the calendar year in November 2008 was 11.10 percent, and annual inflation in November 2008 was 11.68 percent.During November, production and the provision of basic materials is adequate, there is no fluctuation of rice prices, migor and others.

November inflation is very low because, among other commodity prices down the world, such as migor the last three months continue to fall, so the need for CPO in the country, easily met.Until November, there also has not been the influence of imported inflation or inflation because of the decline of the rupiah against the U.S. dollar.

About the estimates of economic conditions during 2009, Miranda state, although there are estimated to decrease the economy during 2009, but the condition of Indonesia will be better than other countries."We see that our economy, despite the fall in 2009, but still far better than other countries," he said. About the decline in interest rates the Fed, Miranda said, the BI decision not to take anything for the To. "We must see, the space (a decrease in interest rates in Indonesia) would open, but we have not seen, has not taken any decision," he said.