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