Institution: Inflation risks in Indonesia rise due to soaring oil prices.

Dahua economists Enrico Tanuwidjaja and Vincentius Ming Shen stated in a report that future inflationary pressures in Indonesia may arise from rising oil prices, which could lead to an increase in transportation costs and food and service prices. They believe that the government's commitment to maintain fuel price subsidies unchanged should limit direct transmission effects, but panic buying and rising transportation costs may still push up CPI from the next month. They added that logistics and delivery services affected by the turmoil in the Middle East pose additional upward risks to core inflation and overall inflation. Dahua expects the Indonesian central bank to maintain interest rates unchanged this year, while fiscal support measures should help cushion the impact on households.