"Our inflation rate still can be below 6 percent or even below 5.5 percent, excluding inflation from fuel oils," Bank Indonesia Deputy Governor Hartadi Sarwono said here on Monday.
The main cause of the 2011 inflation rate would be fuel oil price hikes. Therefore, the government must give the assurance whether or not to limit the use of subsidized fuel oils, he said.
"We are still waiting for the government`s option on fuel oils. So if there is an increase or change in the prices of fuel oil, this will no doubt be the main source of inflation," he said.
He predicted global food commodity and energy prices would continue to influence the 2011 inflation rate. However, if the government could control food commodity prices the inflation rate could be lowered to up to less than 5.5 percent. The figure was 0.2 percent higher than the target of 5.3 percent set under the 2011 state budget.
"Inflation rate still can be higher than 5.3 percent due to global commodity prices that may add 0.2 percent to it," he said.
(Uu.S012/HAJM/H-YH)
Editor: Priyambodo RH
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