ID :
111519
Sun, 03/14/2010 - 13:13
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Shortlink :
https://oananews.org//node/111519
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BI: POWER RATE HIKE TO HAVE SMALL IMPACT ON INFLATION
Jakarta, March 12 (ANTARA) - Bank Indonesia (the central bank/BI) said the government's plan to raise basic power rates, if realized, will only have a small impact on the country's inflation rate.
"It will have an impact but as small as only zero point zero. So the impact will not be significant," acting Bank Indonesia Governor Darmin Nasution said here on Friday.
He said the inflation rate in the first two months of 2010 remained manageable at a low level.
The central bank said earlier the relatively manageable inflation rate in the January-February 2010 period was also reflected by core inflation which fell year-on-year to 3.88 percent in February from 4.43 percent in January.
It said the planned power rate hike would also have no significant impact on the yearly inflation, provided it would only apply to large-scale subscribers.
Overall, the inflation rate would remain manageable at the specified range of 5 plus and minus 1 percent in 2010 and 2011, it said.
"Despite an increase in domestic economic activities, I believe it will not exceed its potential output level so it will not lead to excessive inflationary pressure from the fundamental point of view," Deputy Bank Indonesia Governor Hartadi A Sarwono said.
The government plans to raise the basic power rate by up to 15 percent in July 2010. The House of Representatives (DPR) has endorsed the planned power rate hike which will apply to subscribers of 6,600 VA and above.***
"It will have an impact but as small as only zero point zero. So the impact will not be significant," acting Bank Indonesia Governor Darmin Nasution said here on Friday.
He said the inflation rate in the first two months of 2010 remained manageable at a low level.
The central bank said earlier the relatively manageable inflation rate in the January-February 2010 period was also reflected by core inflation which fell year-on-year to 3.88 percent in February from 4.43 percent in January.
It said the planned power rate hike would also have no significant impact on the yearly inflation, provided it would only apply to large-scale subscribers.
Overall, the inflation rate would remain manageable at the specified range of 5 plus and minus 1 percent in 2010 and 2011, it said.
"Despite an increase in domestic economic activities, I believe it will not exceed its potential output level so it will not lead to excessive inflationary pressure from the fundamental point of view," Deputy Bank Indonesia Governor Hartadi A Sarwono said.
The government plans to raise the basic power rate by up to 15 percent in July 2010. The House of Representatives (DPR) has endorsed the planned power rate hike which will apply to subscribers of 6,600 VA and above.***
