Indonesia’s consumer inflation eases more than expected in January


  • Economy
  • Friday, 1 Feb 2019

JAKARTA: Indonesia’s annual consumer inflation in January slowed more than expected, data from the statistics bureau showed on Friday, reinforcing the central bank’s view prices will stay within target for the whole year.

The consumer price index in January rose 2.82 percent from a year earlier, the bureau said, compared with the median forecast in a Reuters poll of 3.00 percent. Consumer prices rose 3.13 percent in December.

Bank Indonesia (BI) targets 2019 inflation within a range of 2.5-4.5 percent, the same as 2018.

On a monthly basis, consumer prices rose 0.32 percent, as rising prices of rice, fish and some vegetables were partially compensated by a drop in fuel prices, the bureau said.

The annual core inflation rate, which excludes government-controlled and volatile prices, was 3.06 percent in January, barely changed from December’s 3.07 percent and also close to the poll’s 3.05 percent prediction.

The central bank raised interest rates six times by 175 basis points last year to support the rupiah, which at the same time helped to tame inflation. - Reuters

Economy