Indonesia to see higher inflation on the increase in fuel prices

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Source: Marketwatch
Indonesia's inflation rate is expected to remain above 5.5% in 2012 in case the government increases fuel prices by over 1,000 Indonesian Rupiah per liter, reported the Bank Indonesia. Previous estimation of the bank indicated the expected increase in the CPI may vary between 3.5 and 5.5% this year. The government has to decide till April whether to increase fuel price thus cutting exorbitant expenses on the fuel subsidy amid globally higher energy prices.



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