Jakarta (ANTARA News) - Central Bank (BI) acting governor Darmin Nasution predicted inflation in 2010 would reach 5.5 percent or higher than the government`s assumption of 5.3 percent for the 2010 revised budget.

He said after meeting with the House of Representatives`s Budget Committee here on Tuesday the prediction already took into account the planned electricity price hike in the middle of July 2010.

"The 10 percent hike of electricity tariff (TDL) has been calculated and also a rise of between 0.1 and 0.2 percent. So with the TDL rise BI predicts inflation will reach 5.3 to 5.5 percent," he said.

Darmin said without TDL hike BI predicted inflation would reach 5.1 to 5.2 percent.

"Although year-on-year is still around four percent inflation could reach 5.1 to 5.2 percent with TDL hike not taken into account," he said.

Finance minister Agus Martowardojo meanwhile said the rate of inflation until May remained under control and still within the target set by the government.

"We still see it as in line with the target," he said.

The Central Bureau of Statistics announced inflation in May 2010 was recorded at 0.29 percent making year-on-year inflation reaching 4.16 percent and on calendar year (January to May) at 1.44 percent.

"The biggest contributor to the inflation is gold jewelry namely 0.08 percent," BPS chief Rusman Heriawan said.

Other biggest contributors are chili (0.05 percent), onion (0.03 percent), oranges and chili (0.02 percent). Rice, chicken meat and potatoes contributes 0.1 percent. (*)

Editor: B Kunto Wibisono

COPYRIGHT © 2010

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