Food and Energy Prices May Boost Inflation
"Climate is yet predictable. No guarantee that food supply is secure"
VIVAnews - The fluctuating prices of food and energy is still posing threats to the 2012 Draft State Budget.
"Climate is yet predictable. No guarantee that food supply is secure," said Firmanzah, Dean of the Faculty of Economics at University of Indonesia, on Thursday.
Issues on food prices emerged as a result of weak food diversification. Global swinging rice prices will still be affecting the nation as well.
He said, the next challenge will be concerned with infrastructures and national logistics.
According to him, should the two issues are settled, inflation rate will be lower compared 2011. Nonetheless, the inflation rate will depend much on oil prices. Should the premium fuel prices be raised in 2012, inflation will hike.
• VIVAnews
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