This year's inflation may reach double-digit<\/p>\n
JAKARTA (JP): The country's inflation rate will most likely
\nreach the double-digit level this year if the government goes
\nahead with its plan to raise electricity billing rates next
\nmonth, economist Sjahrir says.<\/p>\n
\"The new electricity tariffs will trigger a cost-push
\ninflation to reach a double-digit figure,\" Sjahrir told reporters
\nbefore addressing a seminar here yesterday.<\/p>\n
The government, under the Soeharto administration, has been
\nsuccessful in controlling inflation at less than 10 percent per
\nannum for more than 20 years and has pledged to check it at about
\nfive percent annually in the coming five years.<\/p>\n
However, the inflation rate reached 7.38 percent in the first
\nnine months of this year.<\/p>\n
The government confirmed on Wednesday that electricity billing
\nrates will rise by around three percent next month. The Minister
\nof Mines and Energy I.B. Sudjana is scheduled to hold a press
\nconference about the government's decision on electricity tariffs
\nthis afternoon.<\/p>\n
Sudjana said on Wednesday that the government plans to adjust
\nelectricity tariffs every three months in line with the
\ndevelopments in fuel prices, the depreciation of the rupiah and
\nthe country's rate inflation.<\/p>\n
Sjahrir said yesterday that the rise in electricity tariffs
\nindirectly affects the prices of other goods and services such as
\nhousing.<\/p>\n
The economist, however, praised the government's decision to
\nadjust electricity tariffs at a gradual rate every three months.<\/p>\n
\"That way will shock the public much less than one high hike,\"
\nhe said.<\/p>\n
He also warned that if his prediction on the inflation figure
\nproved accurate, he feared that a rush on the dollar might take
\nplace. (hdj)<\/p>",
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