By: Mahendra Siregar and Hari S. Noegroho

MACROECONOMY

Central bank revises up inflation forecast

The central bank revised up its inflation forecast for 2008 to 6.0-6.5% from around 5% previously, despite saying that a sharp increase in the consumer price index in January was a "one-time shock", Reuters reported Monday (4/2/08).
 
Annual inflation spiked to 7.36% last month, the highest since September 2006, when it stood at 14.6%.

"A recent sharp increase in commodities prices has pushed domestic inflation up ... We will step up our coordination in our policy, especially those related to inflation control," Bank Indonesia Governor Burhanuddin Abdullah said.

 By Mahendra Siregar/Hari S. Nugroho

MACROECONOMY

Govt. to focus on controlling inflation rate: minister

The government will focus its attention on controlling the inflation rate in anticipation of the impact of risks arising from the interest rate cuts by the US Federal Reserve, the finance minister said, Asia Pulse reported Friday (1/2/08).

"Signs of the impact of the US economic slowdown on the global economy are already noticeable. But this does not mean that our economy will grow by less than 6%," Sri Mulyani Indrawati said.