Indonesia cbank: end-2011 inflation may be 5.7 pct if subsidy curbs

Indonesian central bank deputy governor Hartadi A. Sarwono said on Thursday that inflation could pick up to 5.7 percent at the end of the year if the government limited the use of subsidised fuel.

He said earlier on Thursday that inflation could ease to 4.9 percent by the year-end. June inflation slowed to a 12-month low of 5.54 percent, and Bank Indonesia said on Tuesday that it expected price pressures ahead to be under control.

But a director at the energy ministry said on Thursday that Indonesia may ban private vehicles from using subsidised fuel after the Islamic festive season of Eid al-Fitr, which falls at the end of August. Source: Reuters