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Need correction "Inflation Rate vs Rising of Fuel Price"
More than one month ago, the government had increased the subsidized fuel price by 6,500, or around a 30% increase. It’s because of over the deficit national budget, which came from the petrol subsidy comes from. Nevertheless, the proportion between deficit budget and amount of GDP will be over more than 3.0% and will breach in respecting the relevant legislative rules. On the other hand, the hiking of subsidized fuel affects pricing of other goods, such as transport cost and food expenses. Its condition raises the inflation rate higher in the end. President Susilo in the last conference said the government faces a difficult situation between the impact of inflation and maintaining economic growth. The influence of inflation can be solved by rising the BI rate and maintaining the value of currency. Central Bank gives an explanation that they are ready to support government policy on rising inflation, but they still wait for the further affect on currency exchange in the market, while some European countries are slowing economic growth due to dramatic depreciation in their currencies.
[Very good.]
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