Inflation in Indonesia is expected to reach 5.5 per cent or more, higher than the initial 5.3 per cent predicted by the government in the 2010 revised budget, said Bank Indonesia’s acting governor Darmin Nasution.
He said that the new figure has already taken into account the planned 10 per cent electricity price hike in the middle of July this year. Without the expected hike, Indonesia’s inflation would have reached 5.1 per cent to 5.2 per cent instead.
Statistics released by the Central Bureau of Statistics showed that inflation in May stood at 0.29 per cent, resulting in a year-on-year inflation of 4.16 per cent. For the months of January till May, inflation amounted to 1.44 per cent.
According to finance minister Agus Martowardojo, Indonesia’s inflation till May was under control and still within the target set by the government.
