ID :
36090
Wed, 12/17/2008 - 10:32
Auther :
Shortlink :
https://www.oananews.org//node/36090
The shortlink copeid
INFLATION PREDICTED AT BELOW 6.5 PERCENT IN 2009
Pontianak, W Kalimantan, Dec 16 (ANTARA) - The inflation rate in 2009 could be below the minimal projection of 6.5 percent as the people's consumption and international commodity prices would drop next year.
Economic researcher of Bank Indonesia (BI) Rudy B Hutabarat said here on Tuesday that the low inflation would also be boosted by the government's decision to lower prices of subsidized premium gasoline and diesel.
He said that one of the components calculated in the consumer price index (IHK) was of the subsidized premium gasoline and diesel.
"Inflation is expected to go down by 0.5 percent in the January - February period as a result of the cuts in the prices of subsidized gasoline and diesel oils," he said.
Hutabarat said that fuel oil costs were part of the production cost of a product. The lowering of subsidized fuel oil prices was also expected to have effects on the good and service transportation costs.
Bank Indonesia, he said, has been adopting a monetary policy in order to maintain inflation stability and the rupiah exchange rate.
A high rate of inflation will cut the real income of the people so that the standard of life in society will also decline. Income distribution will expand while the poor will have no money to overcome the impact of inflation.
He said that high inflation rate would also hamper economic growth in the long run. Bank Indonesia had lowered its benchmark interest rate by 25 basis points from 9.50 percent to 9.25 percent.
Rudy B Hutabarat said the impact of the change in the BI interest rate on the inflation would only be felt in the coming four to six quarters. Thus, the task of Bank Indonesia is to issue a macro-economic policy in order to make a comprehensive achievement.
He predicted that the inflation rate in 2009 would be at a range between 6.5 and 7.5 percent which was lower than that in 2008 which ranged at between 11.5 percent and 12.5 percent.
Economic researcher of Bank Indonesia (BI) Rudy B Hutabarat said here on Tuesday that the low inflation would also be boosted by the government's decision to lower prices of subsidized premium gasoline and diesel.
He said that one of the components calculated in the consumer price index (IHK) was of the subsidized premium gasoline and diesel.
"Inflation is expected to go down by 0.5 percent in the January - February period as a result of the cuts in the prices of subsidized gasoline and diesel oils," he said.
Hutabarat said that fuel oil costs were part of the production cost of a product. The lowering of subsidized fuel oil prices was also expected to have effects on the good and service transportation costs.
Bank Indonesia, he said, has been adopting a monetary policy in order to maintain inflation stability and the rupiah exchange rate.
A high rate of inflation will cut the real income of the people so that the standard of life in society will also decline. Income distribution will expand while the poor will have no money to overcome the impact of inflation.
He said that high inflation rate would also hamper economic growth in the long run. Bank Indonesia had lowered its benchmark interest rate by 25 basis points from 9.50 percent to 9.25 percent.
Rudy B Hutabarat said the impact of the change in the BI interest rate on the inflation would only be felt in the coming four to six quarters. Thus, the task of Bank Indonesia is to issue a macro-economic policy in order to make a comprehensive achievement.
He predicted that the inflation rate in 2009 would be at a range between 6.5 and 7.5 percent which was lower than that in 2008 which ranged at between 11.5 percent and 12.5 percent.
