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15 May 2006

High fuel prices slowed Indonesia's growth

Indonesia's annual economic growth slowed to 4.59% in the first quarter as the economy struggled with high fuel prices and interest rates.

The government's decision to more than double fuel prices in October last year had pushed annual consumer price inflation above 18%, the highest level in more than six years, and sent interest rates to a near three-year high.

Economic Research Unit
Franklin + Andrews

eru@franklinandrews.com

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