Indonesia central bank sees inflation over 5.5pc if fuel price hike

JAKARTA: Indonesia's inflation will rise above 5.5 percent this year if the government raises subsidised fuel prices by more than 1,000 rupiah ($0.11) a litre, central bank governor Darmin Nasution said on Thursday.

President Susilo Bambang Yudhoyono said on Wednesday Indonesia will have to raise subsidised fuel prices as higher global oil prices were pressuring this year's state budget. He did not give any timeframe or size.