Inflation and growth

Inflation and growth

Head of the Central Bureau of Statistics (BPS) Sugito Suwito
MA warned last week that the rate of inflation might reach double
digits this year. According to Sugito, this could happen if the
parties concerned fail to exercise restraint in raising the
prices of goods.

We greatly appreciate this warning from the head of the BPS.
Perhaps this is the proper attitude for any chief of the BPS to
take. He should not merely record and report the inflation rate
each month, but also raise the people's awareness about what
might happen.

It is obvious why high inflation is feared. Any degree of
inflation means a reduction in the people's purchasing power. The
higher the rate, the heavier the burden which consumers must
bear. The consequence might be a contraction of the market and
growth targets could be upset.

-- Kompas, Jakarta