Electricity hike pushes 2002 inflation up

Electricity hike pushes 2002 inflation up

The Jakarta Post, Jakarta

Inflation in 2002 reached 10.03 percent, up from the government's
single digit target of 9 percent, the Central Statistics Agency
(BPS) said on Thursday.

BPS said that the quarterly increase in electricity rates
during the year had been the primary contributor of the higher
inflation.

"During the last 12 months the most dominant factor behind
inflation was electricity rates," BPS chief Sudarti Soerbakti
said.

There is rising concern that the simultaneous increases in the
price of fuel products and electricity rates earlier this month
would complicate efforts to limit inflation this year. This may
mean the central bank would be unlikely to cut interest rates in
the near term.

Minister of Finance Boediono had dismissed such fears, saying
that the government would move to avoid a sharp increase in food
prices. The food and beverages sector is a major component in the
consumer price index basket.

BPS said that inflation in December rose 1.2 percent from
November due to price increases during the year-end festivities.

In December, basic food prices were up 2.42 percent from
November, while prices of processed food and cigarettes gained
1.01 percent. Housing costs rose 1.05 percent, clothing prices
edged up 0.59 percent, health care costs increased by 0.27
percent, and education and recreation costs rose 0.11 percent.

Transportation and communications costs inched up 0.65 percent
from a month earlier.