Indonesia's inflation will rise above 5.5 percent in 2012 if the government lifts fuel prices by more than IDR1,000 per liter, Bank Indonesia Governor Darmin Nasution reportedly said Thursday.
The central bank has set an inflation target of 3.5-5.5 percent for 2012. The government plans to raise prices of fuel amid rising oil prices as higher subsidies are dampening state budget.
Early this month, the central bank lowered its key benchmark rate by a quarter point to 5.75 percent to boost economic growth. The bank has reduced a cumulative 100 basis points since October last year.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.