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Kamis, 30 Juni 2011

Government Mulls to keep Fuel Subsidize Price Unchanged - Mandiri

The government seems to avoid hiking non-subsidize fuel as it will likely cause an overshoot towards inflation. Hatta Rajasa, Ministry Coordinated for the Economy, said that an increase by Rp 500 per liter could generate 0.7% - 0.8% towards inflation, meanwhile an increase by Rp 1000 per liter could contribute 1% figure against inflation. They see that discipline and consumption tightening by conducting suasion approach seems to be a relevant approach regarding global oil price begins to trim. Furthermore, based on our calculation, the direct effect because of an increase by Rp 500 per liter could add inflation by 0.3% - 0.4% while an increase by Rp 1000 per liter could increase inflation by 0.7%-0.8%. Indicating that the indirect pass through is about about 0.2% - 0.4%.
Posted by Saham Pilihan at 21.48

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