Mon, 12 Sep 1994

Too much or not enough

Although inflation in August was at 0.89 percent, which is lower than the 1.37 percent we saw in July, the rise in the price of food alone is a high 1.46 percent.

This price hike is primarily caused by the 5.27 percent increase for rice, which was due to the drought. The government's move to increase the supply of rice in the marketplace has helped tone down prices.

We do not know when the drought will end -- although rain has come in a number of regions and has even caused a flood in Aceh. As we all know, flood is another evil that can put inflation in high gear.

Weather matters aside we still have to be prudent in controlling inflation.

-- Suara Karya, Jakarta