Indonesia inflation in Nov up more than expected
Jakarta
INDONESIA'S annual inflation rate spiked slightly more than expected in November after fuel prices were hiked, but economists said that the central bank does not need to raise rates again anytime soon. The statistics bureau said on Monday that the annual headline rate was 6.23 per cent, compared with October's 4.83 per cent and above a Reuters poll forecast of 6.06 per cent.
On Nov 17, President Joko Widodo increased fuel prices by more than 30 per cent. Traditionally in Indonesia, hikes spur a chain of price rises because of higher transport costs. Right after fuel prices went up, Bank Indonesia increased its policy rate by 25 basis points to 7.75 per cent. Many expect inflation to be higher in December and January, but November's surge did not spur concern. Inflation is "nothing too worrisome at this juncture", said Gundy Cahyadi of DBS Bank in Singapore, who expects a peak of 7.8 per cent, pr…
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Markets are embracing India's Modi for what he won’t do
Blinken to meet businesses in Shanghai as he kicks off a tough China trip
Indonesia’s central bank surprises with ‘pre-emptive’ rate hike to cushion falling rupiah
South Korea’s economic growth beats forecast as exports rise
China 2024 growth outlook raised to 4.8%, deflation risk lingers
Luxury sector outlook clouded by China’s slow recovery