June inflation remains in double digits<\/p>\n
JAKARTA (JP): Inflation, as measured by the consumer price
\nindex (CPI), increased to 1.67 percent from the previous month's
\nlevel and was higher at 12.11 percent on a year-on-year basis,
\nthe Central Bureau of Statistics (BPS) reported on Monday.<\/p>\n
BPS chief Soedarti Surbakti told a press conference that the
\nhigher inflation rate was caused largely by the recent 30 percent
\nhike in fuel prices.<\/p>\n
However, the inflationary impact of the rupiah's weakness was
\ninsignificant as the local unit was relatively stable (at around
\nRp 11,300) against the U.S. dollar during the month.<\/p>\n
The BPS said that transportation and communications costs rose
\nby 3.4 percent; processed food, beverages, cigarettes and tobacco
\n2.38 percent; housing 1.61 percent; and unprocessed food 1.35
\npercent.<\/p>\n
Cumulative inflation from January to June reached 5.46
\npercent, the BPS said.<\/p>\n
\"The double digit inflation which has taken hold over the past
\nfew months will likely continue until the end of the year,\"
\nSoedarti said.<\/p>\n
The government has set the inflation target for 2001 at 9.3
\npercent. But many analysts foresee inflation this year as
\nexceeding the government's estimate due to the electricity rate
\nhike this month and the weakening rupiah.<\/p>\n
Strong inflationary pressure may force Bank Indonesia to
\nmaintain its tight monetary policy by keeping its benchmark
\ninterest rate at above 16 percent.<\/p>\n
The interest rate on Bank Indonesia one-month SBI promissory
\nnotes is currently 16.65 percent.<\/p>\n
But economists warned that high interest rates would
\nexacerbate the problems of the ailing banking industry, and
\nincrease the burden on the state budget in covering the interest
\ncosts of the government's bank recapitalization bonds.<\/p>\n
The BPS also reported that exports rose by 0.7 percent in May
\nto US$4.85 billion from the previous month due mainly to an
\nincrease in oil and gas exports.<\/p>\n
Cumulative exports from January to May totaled $24.53 billion
\nor an increase of 2.17 percent compared to the same period in
\n2000.<\/p>\n
The rise in international oil prices from $26.83 percent in
\nApril to $27.85 per barrel in May was responsible for the larger
\noil export revenues.<\/p>\n
Non-oil and gas exports in May, however, suffered a decline of
\n0.51 percent to $3.72 billion from $3.74 billion in April, BPS
\nsaid.<\/p>\n
Contrary to economists' predictions of smaller exports to the
\nU.S. due to its economic slow-down, Indonesia's non-oil and gas
\nexports to that country actually rose slightly by $69.4 million
\nto $665.1 million in May.<\/p>\n
Non-oil and gas exports to Japan, Germany, Taiwan, South Korea
\nand Australia were also up by $34.3 million, $22.5 million, $13
\nmillion, $10 million and $4.5 million, respectively.<\/p>\n
However, non-oil and gas exports to Singapore, China, and
\nMalaysia fell by $64.5 million, $28.5 million and 13.8 million,
\nrespectively.<\/p>\n
Among non-oil commodities, machinery exports suffered the
\nlargest decrease of $48.2 million to $175.4 million.<\/p>\n
Meanwhile, imports in May fell by 2.98 percent to $2.84
\nbillion compared to the previous month due to lower non-oil and
\ngas imports, the BPS added.<\/p>\n
Cumulative imports from January to May, however, increased
\n32.92 percent to $14.99 billion from $11.28 billion in the
\ncorresponding period last year.<\/p>\n
Non-oil and gas imports in May 2001 declined by 6.38 percent
\nto $2.44 billion from April, but cumulatively they increased
\n43.56 percent to $13.06 billion compared to the first five months
\nlast year.<\/p>\n
The largest group among non-oil and gas imports between
\nJanuary and May 2001 was machinery and engines at $2.14 billion,
\nor 16.39 percent of the total non-oil and gas imports.<\/p>\n
Imports of consumer goods increased 30.15 percent between
\nJanuary and April reaching $872.5 million. (tnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/june-inflation-remains-in-double-digits-1447893297",
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