|
JAKARTA - Indonesia's inflation may jump to 9 percent this year under the impact of the recent rise in the prices of subsidized fuel oils, World Bank economist Ndiame Diop has predicted.
"The higher fuel prices will first have a greater impact on the inflation rate by increasing average annual inflation rate in 2013," he said here on Tuesday.
The fuel price hike was part of fuel subsidy reform that had a short-term negative impact on the economic growth and slowed down the purchasing power of the poor, he said. "The negative impact of the fuel price hike on the purchasing power of the poor will be offset significantly by a package of budget for social assistance," he said.
Yet the impact would not last longer, provided there was anticipation of monetary policy responsive to price pressure, he said. He said the fuel price hike might also reduce the current account deficit by 0.2 percent of the national gross domestic product (GDP) in 2013 compared if the subsidized fuel reform was not launched.
"Only by encouraging more efficient use of imported fuels and raising investors' confidence in Indonesia's fiscal policy can the performance of foreign balance sheet become positive in general," he said.
The Central Statistics Agency (BPS) recorded the calendar inflation rate in the January-June 2013 period at 3.35 percent and year-on-year inflation rate at 5.9 percent, with core component inflation rate reaching 0.32 percent and year-on-year inflation rate 3.98 percent in June.
Under the revised 2013 state budget, the government has set the target of inflation rate for 2013 at 7.2 percent year-on-year, or higher than the assumed inflation rate of 4.9 percent in the state budget due to the recent increase in subsidized fuel prices.
|
|
|
There are no reactions on this blog entry yet. Be the first one to give a reaction here!
|
Log in to write a reaction
|
You are not logged in to the website. You have to be logged in to write a reaction on this blog entry.
· If you already have an account, please login.
· If you have lost your password, please retrieve it.
· If you don't have an account yet, you can create one.
|
|
|
ABOUT THIS ENTRY |
Add this blog entry to your email, your own blog, MySpace, Facebook, or whatsoever via AddThis:
|

Login if you want to receive emails for reactions on this blog entry. You will receive an update as soon as a reaction on this blog entry is posted.
|
|
Looking for e-tickets for flights in Indonesia? Here's your solution! Order your e-tickets at ticketindonesia.info.
|
BLOG ARCHIVE |
· 2015, 28 entries
· 2014, 591 entries
· 2013, 750 entries
· 2012, 1061 entries
· 2011, 792 entries
· 2010, 644 entries
· 2009, 916 entries
· 2008, 504 entries
· 2007, 725 entries
· 2006, 1014 entries
· 2005, 723 entries
· 2004, 558 entries
· 2003, 525 entries
· 2002, 375 entries
· 2001, 162 entries
|
POPULAR TAGS |
Automatically generated every hour
|
EXCHANGE RATES |
@ 17 May 2018 18:12 CET
|
@ 17 May 2018 21:58 CET
|
@ 15 May 2018 08:42 CET
|
@ 07 May 2018 07:48 CET
|
@ 16 May 2018 09:18 CET
|
@ 17 May 2018 00:46 CET
|
|
Go to 'exchange rates' |
|