Indonesia’s August Inflation Picks Up, but Stays Below Market Expectation
Indonesia’s annual inflation rate picked up slightly in August but was below market expectation and remained within the central bank’s target range, statistics bureau data showed on Monday.
Consumer prices rose 3.20 percent in August from a year earlier, compared with July’s annual inflation rate of 3.18 percent. Analysts surveyed by Reuters had expected a rate of 3.33 percent.
Bank Indonesia targets inflation rate in the range of 2.5 percent to 4.5 percent this year.
The consumer price index was down 0.05 percent on a monthly basis due to a drop in food prices, such as that of chicken and chilies, Central Statistics Agency (BPS) head Suhariyanto told a news briefing.
The annual core inflation rate, which excludes prices of government-controlled goods and volatile food, also edged up to 2.90 percent in August, the second month of acceleration and higher than the poll’s estimate of 2.85 percent.
Bank Indonesia Governor Perry Warjiyo has said the rupiah’s slump had not affected prices at least until July. The rupiah has lost nearly 8 percent of its value so far this year and on Monday it was trading at its weakest in 20 years.