News Focus : World recession blamed for basic commodity price hikes

Indonesian consumers are `crying` over the sky-rocketing of principal commodity prices at home amid warnings by observers that a world economic recession this year will affect many parts of the world, including Indonesia.

The prices of basic commodities such as rice, wheat and soybean have been on the rise over the past few months. The price of rice, for example, rose by 6-10 percent, wheat flour by 50 percent and soybean by 100 percent in recent months.
The soybean price spiral sparked protests from 3,000 `tempe` (fermented soybean cake) producers who held a rally outside the presidential palace last week.
"The increase in the prices of cereals is expected to continue throughout this year," Econit Advisory Group econmist Rasyad A. Parinduri said.
The price increases are attributed to the world economic recession. Eeconomic turbulences have affected the world as a result of the United States subprime mortgage and European financial crises and are causing economic uncertainties.
Besides, global crude oil prices which on the spot market had many times hit a record high of US$90 per barrel, or higher than the average oil price of US$72 per barrel last year, have also contributed to the world economic uncertainties.
"A US economic crisis will ...