Inflation level to miss than targeted

JAKARTA: Inflation level is expected to miss or to penetrate 6% level from the inflation target in 2011 State Budget by 5.3% considering on higher food and energy commodities prices in international markets.The soar of inflation pace this year by penetrating
Wandrik Panca Adiguna
Wandrik Panca Adiguna - Bisnis.com 30 Mei 2011  |  02:21 WIB

JAKARTA: Inflation level is expected to miss or to penetrate 6% level from the inflation target in 2011 State Budget by 5.3% considering on higher food and energy commodities prices in international markets.The soar of inflation pace this year by penetrating 6% or higher than targeted was confirmed by Finance Minister Agus D. W. Martowardojo. Great influence for the higher inflation pace comes from external factors.Meanwhile, by next year, the soar of consumer price index will be pushed to lower level to 4.5% or minus 1% due to improve the peoples purchasing power.Then, to cover the change of inflation target, government will also change the assumptions of price index movement in Indonesia along with other macro-economy assumptions on State Budget.In the written document of Finance Ministry titled Macro Economy Framework and 2012 Fiscal Policies Principals, government also predicts the economic growth pace to be accelerated to 6.5% or higher than an initial estimation by 6.4%.Not all prices riseEven though, the price of rice and sugar goes higher until the last week of this month, the higher inflation has no influence for other food commodities, as informed by Head of Central Bureau of Statistics Rusmay Heryawan.Although estimating great deflation potency, the bureau cant ensure yet for deflation to occur because not all prices of food materials decline.Clearly, the deflation was stayed within 0.31%-0.32% last month, while for this month, it will stand at lower level, Rusman continued.In the meantime, government should control inflation as one of requirements for maintaining the economic power as other developed countries by dragging down the inflation pace to below 3%.The long-term target can be achieved by ensuring the prices of food materials no to be seasonal issues. As a comparison, other countries have overcome the issues with great planning.Nevertheless, inflation shouldnt be at 0% because there is no passion for economic dynamic.(t01/wiw)

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