ID :
17710
Mon, 09/01/2008 - 20:13
Auther :
Shortlink :
http://m.oananews.org//node/17710
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INFLATION IN 2008 MAY EXCEED 12 PERCENT: OBSERVER
Jakarta, Sept 1 9ANTARA) - The inflation rate in 2008 may exceed 12 percent as a result of the increase in the liquefied petroleum gas (LPG) price, economic observer Tony A Prasetyantono said.
"It is difficult to maintain the inflation rate at a level below 12 percent because we still have four months to go in two of which we usually experience seasonal inflation hikes, namely during the Lebaran (Idul Fitri and Idul Adha) holy days and new year," he said here on Monday.
He said with the inflation rate in August at 0.51 percent which would push the calendar's year inflation rate to 9.4 percent, there was room of 2.6 percent for the inflation rate to reach 12 percent.
After all, the impact of the gas price increase had been felt and would continue to have an impact, he said.
"Next month, the multiple effect of the gas price increase will still be felt. Moreover, consumption will increase in the current fasting month," Prasetyantono said.
He said the impact of fuel oil price hikes on inflation had passed but now it was the impact of the gas price hike which would continue to affect inflation.
Prasetyantono regretted the increase in the gas price at a time when consumers still felt the burden of the fuel oil price hikes. The government raised fuel prices last May.
He said the gas price should not yet be adjusted these years because Indonesia still had enough stocks while its price still could be maintained. The important thing, he said, was that the burden of fuel oil should be borne first while adjusting its price gradually.
Prasetyantono said that in order to curb the inflation rate the government should secure the availability of goods stocks and improve goods distribution in September and December when seasonal inflation would usually take place.
"Particular attention should be given to the fasting month and Lebaran festivities," he added.
On the monetary sector, he predicted that the Indonesian central bank, Bank Indonesia (BI), will raise its benchmark interest rate to 9.75 percent at the end of the year.
"BI will raise its benchmark rate to offset the inflation rate," he added.
"It is difficult to maintain the inflation rate at a level below 12 percent because we still have four months to go in two of which we usually experience seasonal inflation hikes, namely during the Lebaran (Idul Fitri and Idul Adha) holy days and new year," he said here on Monday.
He said with the inflation rate in August at 0.51 percent which would push the calendar's year inflation rate to 9.4 percent, there was room of 2.6 percent for the inflation rate to reach 12 percent.
After all, the impact of the gas price increase had been felt and would continue to have an impact, he said.
"Next month, the multiple effect of the gas price increase will still be felt. Moreover, consumption will increase in the current fasting month," Prasetyantono said.
He said the impact of fuel oil price hikes on inflation had passed but now it was the impact of the gas price hike which would continue to affect inflation.
Prasetyantono regretted the increase in the gas price at a time when consumers still felt the burden of the fuel oil price hikes. The government raised fuel prices last May.
He said the gas price should not yet be adjusted these years because Indonesia still had enough stocks while its price still could be maintained. The important thing, he said, was that the burden of fuel oil should be borne first while adjusting its price gradually.
Prasetyantono said that in order to curb the inflation rate the government should secure the availability of goods stocks and improve goods distribution in September and December when seasonal inflation would usually take place.
"Particular attention should be given to the fasting month and Lebaran festivities," he added.
On the monetary sector, he predicted that the Indonesian central bank, Bank Indonesia (BI), will raise its benchmark interest rate to 9.75 percent at the end of the year.
"BI will raise its benchmark rate to offset the inflation rate," he added.
