JAKARTA. Some of government regulations, which will be taking into effect in the beginning of 2017, are feared to reduce people’s purchasing power. Those regulations include: the removal of electricity subsidy for the segment of 900 volt ampere (VA) and the average increase in cigarette excise by 10.54%. Economist at Bank Permata Josua Pardede said, the increase in electricity tariff may affect to people’s purchasing power. However, the effects to the overall public consumption may still be covered with the low inflation rate. Therefore, “Public’s purchasing power will remain solid,” he said, Monday (2/1). Let alone, the concurrent local elections in February 2017 will boost the consumptions. Based on the calculations, Josua predicts that the economy will grow at the range of 5%-5.1% during the quarter I of 2017. Economist at Institute for Development of Economics and Finance (Indef) Eko Listiyanto expects that the government will be alert of the potentials of inflation rate rise as the result of the increase in electricity tariff for the consumer’s segment of 900 VA. The inflation rate rise may reduce public’s purchasing power, which is the backbone of economic growth.
Be alert of pressures on purchasing power
JAKARTA. Some of government regulations, which will be taking into effect in the beginning of 2017, are feared to reduce people’s purchasing power. Those regulations include: the removal of electricity subsidy for the segment of 900 volt ampere (VA) and the average increase in cigarette excise by 10.54%. Economist at Bank Permata Josua Pardede said, the increase in electricity tariff may affect to people’s purchasing power. However, the effects to the overall public consumption may still be covered with the low inflation rate. Therefore, “Public’s purchasing power will remain solid,” he said, Monday (2/1). Let alone, the concurrent local elections in February 2017 will boost the consumptions. Based on the calculations, Josua predicts that the economy will grow at the range of 5%-5.1% during the quarter I of 2017. Economist at Institute for Development of Economics and Finance (Indef) Eko Listiyanto expects that the government will be alert of the potentials of inflation rate rise as the result of the increase in electricity tariff for the consumer’s segment of 900 VA. The inflation rate rise may reduce public’s purchasing power, which is the backbone of economic growth.