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Increasing an oil prices not influence the inflation

Refer to increasing of oil prices in the world will be influence our industries to push up the product prices and of course will increasing the inflation too, Finance Minister, Sri Mulyani said that the government have ability to controll the inflation not more than 6 percent until the end of this year (2007).  

This optimistic only for depend on pricing impact, cause the prices increase has absorbed by goverment with subsidized increasing too. Sri Mulyani said that for November 2007, government has giving the subsidize allowance till to the amount Rp. 55 trilion. 

If the impact not depend on the pricing, so the Central Bank should be answer, what the problems is? Central Bank should be adjusting an exchange rate or interest rate regulation refer to the amount of outstanding money in the market.

While, Deputy Senior of Central Bank, Miranda S. Goeltom said that the Central Bank has prediction that the inflation impact from the food products which the prices was determined by the market (volatile food) will be decreasing by goverment’s comitment to stabilize the condition currently (www.antara.co.id). 

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