Fuel Price Increase Can Affect Inflation: BPS

Jakarta (Antara Bali) - The fluctuation of fuel prices can have impact on the inflation rate in April 2015, said Distribution Statistics Deputy of the Central Board of Statistics (BPS) Sasmito Hadi Wibowo.

"Fuel price increases will be balanced with the decline in the rice price but the inflation rate will be higher than in March," Wibowo stated here on Wednesday.

The fuel price increase in late March will affect the prices of several commodities, including public transportation fares, yet the rice harvest time that begins this month will slightly offset inflation.

The government on Saturday raised the price of premium gasoline for regions outside Java, Madura and Bali from Rp6,600 per liter to Rp6,800 per liter effective March 1.

In addition, the price of premium gasoline for regions within Java, Madura and Bali was also raised by Rp200 per liter from Rp6,700 to Rp6,900 per liter starting March 28.

Wibowo hoped that the price of ornaments such as gold ornaments which declined in March would remain stable and would not fluctuate.

"The price of gold which is declining is expected to remain stable, not to increase. Prices indeed are uncertain but we will be accustomed to it and take into account into the uncertainties. Hopefully, the inflation this month still could be offset to below 0.5 percent," he added.

The BPS recorded that in March 2015 the inflation was noted at 0.17 percent after food commodity prices declined, including the price of fuels which happened to cause deflation in January and February.

In the meantime, the Central Bureau of Statistics (BPS) stated last month that the 0.36-percent deflation recorded in February 2015 was the second-highest for the same month in the past 50 years. (WDY)