Thursday, July 31, 2008

Prices of Food and Gas Take a Toll in Asia

The core inflation rate, excluding food and energy, accelerated in Indonesia to 8.7 percent in May from 6.3 percent in December. During the same period, the core rates rose in May in the Philippines and Singapore to 6.2 percent and 6.8 percent, respectively, from 2.6 percent and 3.5 percent.

While oil prices were rising, most others products prices were rising. Oil is most important public products in the world because most factory and transportations using oil. Therefore, the rising of oil prices strongly impact to rising of other products prices. Some countries reduce tax of oil to block inflation. However, that was not a solution. They couldn't block inflation. Now, the oil prices are dropping. Then we can suppose that other products prices will be dropped.

1 comment:

christa schott said...

Especially in a developing country like Indonesia, the effects of oil prices are going to monstrous. They do not yet have ways to reduce the demand for oil, and use alternative energy sources. With oil prices coming down hopefully it will also drop consumer prices of other items, and put the economy not only in Indonesia, but around the would back on track.