Indonesia: Indef Project 0.3 Percent Inflation after Nonsubsidized Fuel Hike

• Mar 01, 2018

TEMPO.CO, Jakarta – Economic observer from the Institute for Development of Economics and Finance (Indef) said that a price hike for non subsidized fuels will push up February’s inflation by 0.25 to 0.3 percent, month-on-month.

“(A fuel hike) will automatically push up administered prices, and the effect will also reach transportation (costs) as a component of inflation,” Bhima Yudostira Adinegara told Tempo on Thursday, March 1.

BI governor Agus Martowardojo has also said that an increase of non-subsidized fuel prices will directly push up inflation, albeit it will still be within the target range of 1 percent above or under  3.5 percent.

As of the third week of February, the monthly inflation stood at 0.19 percent. The annual inflation range was 3.25 percent. These figures however have not taken into account the impacts of non-subsidized fuels’ price increases.

The Central Statistics Agency (BPS) is scheduled to release February’s inflation data–as well as other economic statistics data–in early March.

Source: https://en.tempo.co/read/news/2018/03/01/056916183/Indef-Project-03-Percent-Inflation-after-Nonsubsidized-Fuel-Hike