VIVAnews – The Central Statistics Agency (BPS) is seeing the possibility that the second United Indonesia Cabinet will have to face a high inflation rate in 2010. The high inflation rate is estimated to be triggered by the rise of good prices along with the global economic recovery.
Head of BPS Rusman Heriawan explained that the demand will tend to go higher and the price will increase, following the improving global economy. As an example, the world crude oil has been fluctuating and exceeding US$70 per barrel.
“[The oil price] is closing to US$80 per barrel shows that there are signs that the world goods will have price increase. We are worried that the inflation [rate] will be higher in 2010,” he said in Jakarta on Tuesday, Oct. 20.
The high inflation rate may happen due to the increasing production and demand. Moreover, if the production level is not balanced with the demand potential, the agency sees that the inflation rate is potential to go even higher than the previous prediction.
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Translated by: Ariyantri E. Tarman
