Bank Indonesia (BI) says the rise in the price of subsidized-fuel price will drive inflation during the next three months.
"There will be monthly inflation of at least 2 per cent starting June," BI Governor Agus Martowardojo said as quoted by kontan.co.id on Thursday.
The inflation rate will not start to decline until August, according to Agus.
Agus said that the impact of the inflation would be mitigated by the government's direct cash assistance programme.
"In the fourth month, the impact of the inflation will be insignificant," he said.