BPS: Increase Pertamax May Push Inflation

Jakarta - The increase in the price of gasoline type pertamax to Rp 9.050/liter earlier this month has the potential to fuel inflation. Not to mention the price of rice has been stopped down.
"This week the price of rice tended to survive, began to stop the decline but not go up," he said when met after the meeting of Food Security in the Office of Coordinating Minister for Economic Affairs, Jalan Banteng Square, Jakarta, Wednesday (05/11/2011).
In addition, Rusman states expected to remain there is the potential inflation of the price of gold and jewelry that at some time experienced an increase. So also with the price hike pertamax occurring from 1 May this be Rp 9,000.



"If there is little effect, then there is also a pertamax the May 1 yesterday rose from Rp 8600 to Rp 9050, although its weight is not too big but it would contribute to inflation is small," he explained.
However, Rusman declare potential deflation could still occur given other food prices are still declining.
"But other commodities of the second week is still sliding down. All was still down, the trend down, red peppers are now at the level of USD 15 thousand, it falls, still experienced a decrease if it is 15% red pepper, cayenne pepper is still down, still down red onion , sugar was still down, just started to stop the decline of rice, "he explained.
Thus, Rusman declare potential deflation and inflation potential is still 50:50.
"So if the question back to this inflation will be no inflation or deflation, I would say now is 50:50. If there is deflation that could happen, if there is inflation would probably be small. So the chances of deflation could still occur, but when in April the opportunity deflasinya It would present a strong start, but nobody mengejutkanlah inflation in May was, "he said.
To maintain this inflation, Rusman expressed Bulog to attempt to strengthen the reserves of rice and distribute rice so there is no inflationary pressure as prices of rice.
"We're talking seriously to strengthen reserves, Bulog should be all out," he said.
(Source:  www.detikfinance.com)

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